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1962 Supreme(Ker) 85

Judges : T.C.RAGHAVAN
Raghava Menon - Appellant
Versus
Kuttappan Nair - Respondent
Case No : C. R. P. No. 1118 of 1960
Decided On : 03/29/1962
Advocates Appeared :
M. K. Narayana Menon; C. S. Narayanan; For Appellant S. Narayanan Potti; N. K. Varkey; Savithri Sankar; For Respondent

The guarantee certificate included a guarantee for replacement, and the defendant was liable for damages for breach of warranty under the Sale of Goods Act.

Headnote:

Guarantee Certificate - Sale of Goods - S.16 of the Indian Sale of Goods Act - [S.16] - The guarantee certificate included a guarantee for replacement as well in appropriate cases. The defendant was bound to replace the watch under the guarantee certificate and was liable for damages for breach of warranty under the Sale of Goods Act.

Fact of the Case:

The plaintiff purchased a Kenson Dayter Wrist-watch and a chain from the defendant-Company. The watch had recurring issues and the plaintiff demanded a new watch or a refund based on the guarantee certificate. The lower court dismissed the suit, stating that the guarantee was only for servicing and repairing and the plaintiff had not proved the quantum of damages.

Finding of the Court:

The court found that the guarantee included a guarantee for replacement and held the defendant liable for breach of warranty under the Sale of Goods Act. The Civil Revision Petition was allowed, and the defendant was directed to supply another watch and chain or pay the plaintiff a specified amount.

Issues: The effect of the guarantee certificate, the defendant's obligation under the guarantee, and the plaintiff's entitlement to a new watch or refund.

Ratio Decidendi: The guarantee certificate included a guarantee for replacement, and the defendant was bound to replace the watch under the guarantee certificate and liable for damages for breach of warranty under the Sale of Goods Act.

Final Decision: The Civil Revision Petition was allowed, and the defendant was directed to supply another Kenson Dayter Wrist-watch and chain of the description of the watch and chain involved in the suit. In the alternative, the plaintiff was granted a decree for a specified amount with proportionate costs in the lower court.

Judgment :-

1. The plaintiff in S.C.S. No. 157 of 1959 on the file of the Court of the Munsiff of Trichur questions in this Civil Revision Petition the correctness of the dismissal of his suit by the learned Munsiff. The facts that led to the suit may be briefly noted.

2. The plaintiff purchased a Kenson Dayter Wrist-watch from the Trichur branch of the defendant-Company on 10th August 1957 for Rs. 172 64 nP. and also a chain for Rs. 11.22 nP. Along with the watch the Company issued the guarantee certificate Ext. P3. Within about three weeks the plaintiff found that the watch was not working pronely and therefore he handed over the watch at the Trichur branch of the defendant-Company. It was kept there for a few days and was returned to the plaintiff. A few days thereafter it was taken by the plaintiff to the Head office of the defendant Company at Ernakulam and was handed over to the Head-office. After several days the plaintiff got back the watch through the Trichur branch with the assurance that the defects were set right and the watch would not give any further trouble. Within a week the trouble reappeared and on 17th October 1957 the watch was handed over again at the Trichur branch and the person in charge of that branch made an endorsement on the guarantee certificate to the effect that the watch was received at that branch for adjustment. The watch was not thereafter taken back and is still with the defendant-Company.

3. On 4th November 1957 the plaintiff caused a registered notice to be issued through his lawyer to the defendant-Company demanding back the price of the" watch and chain with 6 per cent interest. To that letter the Company sent a reply on 13th November 1957 and they alleged therein that the irregularity or defect discovered in the watch was due to insufficient winding. They also alleged that the guarantee certificate issued by them was only for servicing, if necessary, and that they were not bound to replace the watch, if it was found to be defective. They further alleged that it was not their practice to take back goods once sold, nor to exchange them for other articles, similar or otherwise, and as such they were not prepared either to give the plaintiff a new watch or to refund the price paid by him. Finally they offered that, for the sake of the plaintiff's satisfaction, they, if necessary, were prepared even to have it tested by any competent and reputed firm of watch importers. To this letter the plaintiff's counsel replied on 19th March, 1958. In this reply the plaintiff agreed to have the watch tested by the West End Watch Co. at the expense of the defendant and he was also prepared to abide by the decision of that Company provided that the watch, after the test, was forwarded to the plaintiff direct by the West End Watch Co. with their opinion. To this letter the defendant sent no reply and consequently the suit followed.

4. The lower court agreed with the contention of the defendant that the guarantee was only for servicing and for repairing for one year and did not include any undertaking to replace the watch. The lower court further held that the watch had no mechanical defect and therefore the plaintiff was not entitled to repudiate the contract and demand the price back. It also held that the plaintiff had not proved the quantum of damages. In the result the lower court dismissed the suit.

5. The first question for consideration is the effect of the guarantee certificate; namely, whether it guarantees only servicing and repairing during one year or whether it includes a guarantee for the replacement of the watch itself if necessary. The guarantee certificate is as follows:

"This is to certify that the undermentioned KENSON WATCH which has been sold this day is guaranteed for a period of ONE YEAR, unless unfairly used or damaged by accident, water or perspiration.

IMPORTANT: L This guarantee becomes null and void if the article is entrusted to any other person for repairs or for any other attenti








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