1956 (3) TMI 33

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....-15, which are the circulars issued by the Textile Commissioner and dated 12th May, 1945, and 16th May, 1945, the following appears to be the system that was introduced for the purpose. Mill-made cloth available for consumption in the State was placed under four categories: (1) cloth purchased by quota-holders from the mills situate outside the south deficit zone (presumably the south deficit zone included Madras State); (2) cloth purchased by quota-holders from mills situate within that zone; (3) market purchases from surplus areas, and (4) foreign cloth. We are now concerned only with the third category, namely, market purchases from surplus areas. The plaintiff's case is that he functioned as a retail consignee for the distribution of th....

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....quested to consign the bales to a reliable retail dealer whose duty it will be to break open the bales and distribute the cloth with reference to the quotas allotted to the dealers concerned. No remuneration will be paid to those distributing retail dealers. The importing dealers concerned will, however, separately invoice all the retail dealers who are linked up with them and recover the amounts either direct, or, as the case may be, through the distributing retail dealers. The plaintiff comes under the category of reliable retail dealers and he is appointed as distributing retail dealer for breaking open the bales and making an equitable distribution in accordance with the quotas already fixed and to be diverted in respect of the consignm....

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.... the fact stated to have been admitted by him in his evidence as P.W. 1 that he delivers goods to retailers after receiving payments from them and that he takes delivery of the goods from the wholesalers only on payment, implying thereby that the plaintiff was purchasing goods from the import dealers and then effecting transactions of sale with the retailers. The buying and selling has been found to be between the import dealer and the retailer to whom alone only the invoices are sent; but the invoices pass through the plaintiff and if it becomes necessary to make payments and take delivery for the purpose of distributing the goods to the retailers after breaking open, such payments the plaintiff has necessarily to make; but it is not neces....