UNION OF INDIA vs J. K. GAS PLANT

The Supreme Court upheld the High Court's decision that the plaintiff company was entitled to recover the price of steel supplied to G. Brothers Ltd. under Section 70 of the Indian Contract Act, despite non-compliance with Section 175(3) of the Government of India Act, 1935. The Court clarified that the liability of the Union of India to pay for the goods was not negated by Section 17(2) of the Defence of India Act, as the suit was for recovery of price and not for damages. The Court affirmed the trial Court's decree for the full amount claimed, including interest.