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BIREN VAISHNAV, NISHA M. THAKORE
Food Corporation of India – Appellant
Versus
Jamnadas Ramji – Respondent
JUDGMENT :
Biren Vaishnav, J.
1. First Appeal No. 2531 of 2003 has been filed by the appellant, Food Corporation of India, who was the original defendant in Special Civil Suit No. 162 of 1990. The respondent – plaintiff had filed a suit inter alia stating that it was a partnership firm carrying on the business of clearing and handling cargo. The Food Corporation of India had issued an advertisement on 19.01.1987 offering coastal movement of food grains from Rozi-port i.e. Port of Bedi, also known as Port of Okha and also for the services which included transportation of grains from godowns to loading ports etc.
1.1 On the respondent – plaintiff being the lowest tenderer, the tender was accepted and a Work Order was issued on 02.03.1987. A Contract was awarded to transfer approximately 49,200 mts of food grains from Rozi-port to Calcutta and 39,200 mts from Rozi-port to Madras, in all total 88,400 mts.
1.2 The case of the plaintiff was that the rates for transportation from Rozi-port to Madras was fixed at Rs.367/- per ton. On payment of earnest money, the Food Corporation Of India, only provided 15,615 mts for transportation from Rozi to Madras against the work order of 39,200 mts. Whi
Damages for loss of expected profits can be claimed in breach of contract cases, provided the breach is established and the loss is evidenced.
The court ruled that claims for damages in breach of contract require proof of actual loss, which was not established by the plaintiffs, leading to dismissal of the appeal.
The contractor is not liable for destination shortages absent sufficient evidence, affirming the court's findings on liability for withheld amounts.
The defendant's deduction of 30% of the claim amount was not justified under the contract, and the plaintiff was entitled to recover the 30% of the claim amount and interest at 12% per annum on the d....
The issuance of a No Demand Certificate validly discharged the contract, and subsequent demands by the Food Corporation of India were arbitrary and illegal.
The expectation of profit can be compensated in breach of contract cases without proving actual loss, as established in arbitration and contract law.
Unilateral deductions of demurrage charges from a contractor's bills are impermissible without proper determination of liability as per contractual obligations.
The court affirmed that failure to demonstrate actual loss precludes the forfeiture of security deposits, underscoring the principle that a breach must cause substantial damages to warrant penalties.
The court affirmed the legality of contract termination due to imposed load restrictions, highlighting that contractual obligations must be fulfilled to claim damages.
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