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1928 (2) TMI 6 - HC - Indian Laws

Issues:
1. Appeal against decrees of the High Court dismissing the suit for damages.
2. Entitlement of plaintiffs to recover damages for alleged breach of contract.
3. Interpretation of contract terms and conditions regarding the sale and delivery of goods.
4. Application of Sections 39 and 63 of the Indian Contract Act in dispensing with performance of the contract.

Analysis:
The judgment pertains to an appeal from decrees of the High Court of Judicature at Lahore, which reversed the decree of the Senior Subordinate Judge of Delhi and dismissed the suit of the plaintiffs claiming damages for non-delivery of goods by the respondents. The main issue revolves around whether the plaintiffs are entitled to recover damages for the alleged breach of contract for the sale and delivery of goods. The contract, dated November 29, 1916, involved the purchase and sale of cases of white shirting, with specific terms regarding payment, delivery, and expenses. The dispute arose when the British Government prohibited the export of goods in tin and wooden cases, leading to disagreements between the parties on the mode of delivery.

The Court analyzed the correspondence between the parties, where the appellants repeatedly refused to accept goods packed in bales instead of cases, effectively repudiating their obligation under the contract. The respondents argued that the appellants had put an end to the agreement and had been expressly dispensed from delivery. The interpretation of Sections 39 and 63 of the Indian Contract Act was crucial in determining whether the contract had been validly terminated by the appellants' actions. The Court examined precedents and legal principles to ascertain the applicability of these sections in the present case.

Regarding the description of goods and the packing requirements, differing opinions were expressed by the lower Court and the High Court, citing relevant legal cases to support their positions. Ultimately, the Court found that the alleged dispensation under Section 63 was a complete defense, as the appellants had consistently dispensed with the performance by the respondents and could not claim damages for a breach of a promise they had effectively waived. The judgment emphasized the importance of contractual obligations, performance, and the legal implications of dispensing with agreed terms. Consequently, the appeal was dismissed, and costs were awarded to the respondents.

 

 

 

 

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