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1976 Supreme(SC) 411

SUPREME COURT OF INDIA
A.N. RAY, C.J.I., M.H. BEG AND P.N. SHINGHAL, JJ.
Union of India, Appellant
Versus
Sita Ram Jaiswal, Respondent.
Civil Appeal No. 1762 of 1968,
D/- 28-10-1976.
Advocates appeared
Mr. G. L. Sanghi, Sr. Advocate, (Mr. Girish Chandra, Advocate with him), for Appellant; Mr. Purushottam Chatterjee, Sr. Advocate (Mr. Sukhmar Ghose, Advocate, with him), for Respondent.

Advocates:
G.L.SANGHI, GIRISH CHANDRA, PURSHOTTAM CHATTERJI, SUKUMAR GHOSH

Headnote:Indian Contract Act, Sec. 70-Non Gratuitous act-Acceptance "not intending to do so gratuitously"-No question of rejection of goods or restoration arises-Suit decreed. (Paras 6, 12, & 14)

Judgment

RAY, C.J.I. :- This appeal by certificate is from the judgment dated 11, April 1968 of the High Court at Calcutta.

2. The respondent filed this suit against the appellant in the High Court at Calcutta and claimed Rs. 76,691-2-0 with interest or in the alternative Rs. 78,204-8-4. The respondents case in short is that the respondent delivered to the defendant appellant pursuant to several orders from time to time goods described as Mac Intyre Sleeves and other goods. The respondent alleged in the plaint that the appellant "wrongfully purported to reject the Mac Intyre Sleeves" supplied by the respondent. The respondent further alleged that the rejection was unlawful inasmuch as the rejection was after lapse of reasonable time. The respondent claimed the sum mentioned in the plaint as reasonable price of the goods. The alternative case of the respondent is that the plaintiff respondent was entitled to the sum for supply of Mac Intyre Sleeves because the same were not supplied gratuitously.

3. The appellant denied in the written statement that there was any enforceable contract, and, therefore, the respondent was not entitled to sue for price of the goods delivered. The appellant took the plea in bar of the suit that there was no contract in compliance with Section 175 of the Government of India Act, 1935. The appellant pleaded to the alternative case of the respondent by alleging that the goods were lawfully rejected because the goods were found not to be of the correct description and quality. The appellant further denied that the rejected goods were retained after lapse of reasonable time without intimating the rejection.

4. At the trial the respondent found that the claim for the sum of money as price of goods could not be sustained because of lack of enforceability of contract. The respondent therefore, sought to make the appellant liable to compensate the respondent by reason of provisions contained in Section 70 of the Indian Contract Act.

5. Counsel for the appellant raisesd the plea at the trial that there was no foundation in the plaint for any case under Section 70 of the Indian Contract Act.

6. The three ingredients to support the cause of action under Section 70 of the Indian Contract Act are these: First, the goods are to be delivered lawfully or anything has to be done for another person lawfully. Second, the thing done or the goods delivered is so done or delivered "not intending to do so gratuitously." Third, the person to whom the goods are delivered "enjoys the benefit thereof." It is only when the three ingredients are pleaded in the plaint that a cause of action is constituted under Section 70 of the Indian Contract Act. If any plaintiff pleads the three ingredients and proves the three features the defendant is then bound to make compensation in respect of or to restore the things so done or delivered.

7. The allegation in the plaint in the present case was as follows. "In any event the plaintiff is entitled to the said sum of Rs. 26,248-7-0, and Rs. 50,442-11-0 with interest for the said Mac Intyre Sleeves, Copper Strips and Stay Shackles for the same were not supplied gratuitously." The plaint lacked the two other essential features to constitute a cause of action under Section 70 of the Indian Contract Act. These were that the respondent delivered the goods lawfully to the appellant and that the appellant enjoyed the benefits thereof. The Court should not have allowed the respondent to go to trial in the present case with a claim under Section 70 of the Indian Contract Act in the absence of proper pleadings.

8. In view of the fact that parties went to trial and issues were raised on claims under Section 70 of the Indian Contract Act and the litigation went through the course of trial and appeal we do not desire to non-suit the respondent at this stage.

9. The trial Court held that the goods were not properly rejected. But the trial Court also held that the wordings of the rejection memos negatives any cas









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