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TMI Blog1984 (3) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... d corporation and a different rate for other customers. Sandvik Asia Ltd. were to allow 20% per cubic metre commission to Industrial Oxygen on the sales effected by the latter. 2. Industrial Oxygen approached the Indian Drugs Pharmaceuticals Ltd., Unit, Synthetic Drugs and Plant at Hyderabad ( Indian Drugs ) on the question of supply of Hydrogen gas and vide letter dated 24th /27th June 1969 (Exhibit 40) a contract was entered into between the parties for the supply of 7500 cubic metres of Hydrogen gas in returnable cylinders. A schedule of delivery was drawn up under which 50 cylinders were to be delivered by 30-6 1969 and the balance of the ordered quantity at the rate of 50 cylinders every week. As regards the modus operandi of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs did not pay the charges as demanded, Industrial Oxygen filed Special Civil Suit No. 161 of 1972 in the Court of II Jt. Civil Judge, S.D. Poona, who decreed the suit against the Indian Drugs, which gives rise to this appeal. 3. From the tables filed by Industrial Oxygen (Exhibit 35) it appears that firstly they calculated the hire charges at the rate of ₹ 1.25 per week till September 1969 but thereafter the rate was raised to ₹ 5/- per day in conformity with their demand in Exhibit 32. The delay in return of the empty cylinders ranges from 6 days to 137 days and the details of the calculations are not in dispute. 4. Mr. Gumaste, the learned Advocate for the appellant attacks the judgement of the trial Court on two counts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sure of liquidated damages. To attract the provisions of Section 74 it is not necessary that the entire contract should come to an end; the breach of each term thereof can be visualised in advance and taken care of by providing an adequate clause for liquidated damages so that the parties to the contract can proceed to work put the contract in future and settle the question of damages that have accrued on the basis of the rate that has been put as a pre-estimate at the commencement of the contract. If the very purpose of putting a genuine pre-estimate is to avoid litigation and introduce certainty in computation of difficult question of assessment of damages, it seems to be in the highest degree unlikely that the intention would have been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh Sobha Singh v. Union of India, [1958]1SCR781 which was a case in which two motor trucks which were hired to the Defence Department for imparting tuition to the military personnel were not returned to the owners. The owners had claimed the price of the trucks as well as the rental charges at the rate of ₹ 17/- per day. The case of Dhian Singh was one of conversion by bailee which is not the case here. It is nobody's contention that the cylinders in which the gas was supplied were not returned to the supplier. The second distinguishing feature is that the claim was decreed at the agreed rate of ₹ 17/- per day by way of hire charges and not at any higher rate as is being claimed by the plaintiff in the facts of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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