Law:

Section:

This is a suit for the recovery of Rs. 1,17,316-10-7 with interest from the date of the suit till realization of the claim. The facts which form the back ground of this suit are that the parties entered into a contract by which the defendant agreed to charter a ship of the plaintiff company known as s. s. "Safina-e-Tariq" to transport by it his cargo of "cotton-seed oil cakes undecoaticated" from Karachi to three ports of U. K. The three ports were Avonmouth, Liverpool and Manchester or Glasgow. The choice between Manchester and Glasgow was of the defendant. The contract (Exh. 6/1) was made on the 11th of December 1954, and four of the clauses of the contract which are important for the present purposes are as follows:-     "(1) That you (charterer) will undertake to give a full load to the vessel .upto a maximum of 4,000 tons dead-weight.   That you (shipowner) will have no objection to our carrying a part of the cargo on deck on the usual `on deck' terms and conditions.   . . . . . The freight will be paid to us (shipowner) by you (Charterer) in Pakistani currency as follows   ( a) 25% of the estimated freight in advance on confirming this arrangement.   (5) That in case you fail to provide the cargo as per clause (2) above, you will be responsible to pay us a demurrage of Rs. 2,000 per day and that if you fail to supply the required full quantity, you will pay dead-freight for the space left unutilised."   On the date of the agreement the defendant gave a cheque for Rs. 40,000 to the plaintiff. It is Exh. 6/9. On the 14th of December 1954, the defendant stopped payment of the cheque and wrote a letter to the plaintiff (Exh. 6/5) in which he stated as follows:-   "With reference to our conversation to-day your unbusiness -like behaviour was highly regretting and your threat to cancel your undertaking to carry our goods had to be reluctantly accepted by us . . . . Immediately after accepting your threat to cancel your undertaking we phoned to Mr. Rafiq that you should not send the cheque of Rs. 40,000 which we, in good faith, issued to you ; the payment of which after knowing from…