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1961 Supreme(Guj) 19

Gujarat High Court
Judgename :P.N.BHAGWATI
SHAH MOHANLAL MANILAL - Appellant
Versus
FIRM OF DHIRUBHAI BAVAJIBHAI - Respondent
SECOND APPEAL 90 of 1960
Decided On : 02/21/1961

Advocates Appeared: MAGANBHAI R.BAROT, VITTHALBHAI PATEL

Headnote:

Indian Sale of Goods Act - Section 41 - Second Appeal – Consignment - Right of buyer to reject goods taken delivery of by him from seller and supplied by him to his sub-purchases before he has had a reasonable opportunity of examining goods for purpose of ascertaining whether they are in conformity with contract - Contract between the plaintiffs and defendant whereby plaintiffs agreed to sell to defendant one wagon load of pure dandy coal at plaintiffs dispatched to defendant bags containing Bengali of coal on plaintiffs thereafter delivered railway receipt in respect of consignment defendant against payment of a cheque - Consignment was received by defendant at Baroda - It appears that strength of contract with plaintiffs defendant had entered into contracts with various sub-purchasers for sale of pure defendant therefore immediately on receipt of consignment delivered some of goods out of consignment to same day and removed the rest of goods to his warehouse - Defendant admittedly did not examine goods before delivering same sub-purchasers and reason was that delivery goods was considerably delayed by plaintiffs and as a result thereof defendant had not been able to deliver goods to sub-purchasers in time and sub-purchasers were therefore goods - Held, Where goods delivered to buyer which has not previously examined is not deemed to have accepted them unless and until has had a reasonable opportunity to examining them for purpose of ascertaining whether they are in conformity with the contract - Buyer is deemed to have accepted goods when intimates to seller that has accepted them or when goods have been delivered to him and he does any act in relation to them which is inconsistent with ownership of seller or when after lapse of a reasonable time he retains goods without intimating to seller that has rejected them - Construction contended for by should be read as limiting provisions - According buyer is not even in events specified in to be deemed to have accepted goods has had a reasonable opportunity of examining them for purpose of ascertaining whether they are in conformity with the contract - Contention of is that contemplates a later stage of the transaction than where buyer has not previously examined the goods he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them and it is necessary to prove some further facts in order to show that buyer has accepted them. If this view of the section suggested by correct it would mean that before buyer can he said to have accepted goods it would have to be proved that has had a reasonable opportunity of examination as well as that he did one of acts mentioned in This view is in my opinion incorrect and contention of support of this view must be rejected - And I think reason is obvious - If defendant could not be deemed to have accepted goods by selling and delivering a part of goods to sub-purchasers argued defendant was entitled to reject goods and as soon as defendant had a reasonable opportunity of examining goods defendant immediately rejected - If this contention of is correct it is obvious that plaintiffs are not entitled to claim balance of price of goods from defendant - Appeal dismissed

P. N. BHAGWATI, J.

( 1 ) THIS Second Appeal raises a short question of law regarding the right of a buyer to reject goods taken delivery of by him from the seller and supplied by him to his sub-purchases before he has had a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract. the facts which are admitted or found to have been proved by the first appellate Court may be briefly stated as follows. On or about 24/03/1952 a contract was entered into between the plaintiffs and the defendant whereby the plaintiffs agreed to sell to the defendant one wagon load of pure dundi coal at the rate of Rs. 2-1-3 per deshi maund. The plaintiffs despatched to the defendant under the contract 397 bags containing 345 Bengali maunds of coal on 1/05/1952. The plaintiffs thereafter delivered the railway receipt in respect of the consignment to the defendant on 3/05/1952 against payment of a cheque for Rs. 1 0 and Rs. 100/in cash. The consignment was received by the defendant at Baroda on 6/05/1952. It appears that on the strength of the contract with the plaintiffs the defendant had entered into contracts with various sub-purchasers for sale of pure dundi coal. The defendant therefore immediately on receipt of the consignment delivered some of the goods out of the consignment to the sub-purchasers on the same day and removed the rest of the goods to his warehouse. The defendant admittedly did not examine the goods before delivering the same to the sub-purchasers and the reason was that delivery of the goods was considerably delayed by the plaintiffs and as a result thereof the defendant had not been able to deliver the goods to the sub-purchasers in time and the sub-purchasers were therefore clamouring for the goods. Whatever be the reason it is an admitted fact that the defendant did not examine the goods for the purpose of ascertaining whether they were in conformity with the contract and delivered the same to the sub-purchasers before examination. On the next day i. e. 7/05/1952 the defendant received complaints from the sub-purchasers that the goods which had been delivered to them by the defendant were not pure dundi coal. The defendant thereupon immediately sent a telegram to the plaintiffs and also addressed a letter to the Plaintiffs complaining that the goods supplied by the plaintiffs to the defendant under the contract were not pure dundi coal as provided by the contract. The defendant rejected the goods and stopped payment of the cheque for Rs. 1 0 which had been given by the defendant to the plaintiffs against delivery of the railway receipt in respect of the goods. The plaintiffs thereupon filed the present suit against the defendant claiming to recover from the defendant the sum of Rs. 2 299 being the balance of the price in respect of the goods. The defendant by his written statement contended that since the goods were not of the contract description he was entitled to reject the goods and the goods having been rejected by him on 7/05/1952 he was not liable to pay the price of the goods to the plaintiffs. The defendant also claimed damages from the plaintiffs for breach of the contract committed by the plaintiffs by their failure to deliver goods of the contract description to the defendant. The learned trial Judge dismissed the plaintiffs suit and passed a decree in favour of the defendant awarding Rs. 1 485 as and by way of damages. he plaintiffs filed an appeal against this decree of the learned trial Judge and the defendant also filed cross-objections. The learned District Judge who heard the appeal and the cross-objections held that though the goods delivered by the plaintiffs to the defendant were not pure dundi coal as stipulated under the contract and the defendant was therefore entitled to reject the goods the defendant had lost his right of rejection by selling and delivering a part of the goods to his sub-purchasers. The learned District Judge held t




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