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TMI Blog1956 (5) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... site party pleaded that the application was not covered by the provisions of the Act, and several other questions were raised. But the real question that arises is the question of jurisdiction and that" depends upon the meaning to be attached to the word "debts". There is no doubt that the applicants were displaced persons and that if the claim can be brought within the meaning of the word "debt" the Tribunal would have jurisdiction to determine the matter. Mr. Bhatnagar acting as a Tribunal has held against the applicants finding that "debt" does not include a claim for damages for breach of contract of sale of goods. The applicants have come up in revision to this Court and the matter was heard by Hon'ble the Chief Justice Bhandari C. J., who referred the matter to a Division Bench. 4. Two questions would arise: (1) whether an amount of money borrowed for the first time after the partition or a claim to damages which arises out of a breach of contract after the partition is a "debt"; and (2) whether a claim for damages for breach of contract by itself is covered by the definition of the word "debt" as given in Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laims for money, but are the words "pecuniary liability" used in that wide sense so as to cover damages for breach of contract or damages for the commission of a tort is the question now before us. In jurisprudence, "Civil proceedings, if successful, result in a judgment for damages, or in a judgment for the payment of a debt or (in a penal action) a penalty, or in an injunction or decree of specific restitution or specific performance or in an order of mandamus, prohibition, or ceriorari, or in a writ of habeas corpus, or in other forms of relief known distinctively as civil." Sal-mond on jurisprudence p. 106. There are cases where civil and criminal proceedings may result similarly, i.e., the defendant may be ordered to pay money. There are statutes in England where a common informer, who is a person who first sues for penalty for the breach of certain statutes, may be able to sue on his own account and thus in all these cases the outcome is a decree for money. Can it be said that all these cases were within the contemplation of the legislation when they gave definition to the word "debt" in the language which they have used in Section 2(3) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude the amount for which the liability had been renewed if it is more than what was originally advanced. 12. That such a wide meaning cannot be given to the words "pecuniary liability" has been held by a judgment of the Bombay High Court in Iron and Hardware (India) Co. v. Firm Sham Lal & Bros., 1954 Bom 423 (AIR V 41) (C), where a claim for damages was held not to be covered by the words "pecuniary liability" under Section 2(6) of the Act. It was observed by Chagla C. J.: "Now, in order that there should be a debt there must be an existing obligation. The payment may be due immediately or it may be due in future, but the obligation must arise in order that the debt) should be due. It may even be that the actual amount due in respect of the debt may require ascertainment by some mechanical process or by the taking of accounts. But even when the actual amount is to be ascertained the obligation must exist. It is well settled that when there is a breach of contract the only right that accrues to the person who complains of the breach is the right to file a suit for recovering damages. The breach of contract does not give rise to any debt and therefore it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party to the contract but until that determination is given, there is no liability upon the defendant. The basis of a suit for damages is that on the date the suit is brought there is no pecuniary liability and it has yet to be established and the plaintiff comes to Court for that particular purpose. 13. Learned Advocate for the petitioners emphasises the words "to be ascertained". As Chagla C. J. has pointed out, these words cannot make the pecuniary liability to comprise a suit for damages. What it means is that the debt must be due and all that has to be done is the ascertainment of the amount by some process, e.g., taking of accounts. But even in that case there must be a pre-existing liability. 14. A reference was then made by the petitioner to Section 73, Contract Act, which deals with compensation for loss or damage caused by breach of contract, it says : "73. When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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