Judges : SUBRAMONIA IYER
Pandurang Apte - Appellant
Versus
Krishna Iyer - Respondent
Case No : S. A. No. 164 of 1124 (C)
Decided On : 10/06/1953
Advocates Appeared :
A. Madhava Prabhu; H. V. Kammath; For Appellant K. Rama Iyer; For Respondent
Breach of Contract - Sale of Goods - Indian Sale of Goods Act - Section 35, 46, 54 - The court discussed the terms of the contract, the obligation of the buyer to demand delivery, and the seller's right of resale. The court found that the buyer was wrong in cancelling the contract and that the seller was not justified in fixing a specific hour or day for taking delivery. The court also considered the reasonable time for tendering or taking delivery and the seller's obligation to keep the contract open for performance.
Fact of the Case:
The appellants and the respondent entered into a contract for the sale of cocoanut oil. The appellants cancelled the contract, and the respondent resold the oil to another buyer. The appellants refused to pay for the oil and the respondent filed a suit for damages for breach of contract.
Finding of the Court:
The court found that the appellants did not commit a breach of the contract by not complying with the demand of the respondent to take delivery on a specific date. The court also found that the respondent was not justified in fixing a specific hour or day for taking delivery.
Issues: The main issues were whether the appellants committed a breach of the contract by not taking delivery on a specific date and whether the respondent was justified in fixing a specific hour or day for taking delivery.
Ratio Decidendi: The court held that the buyer's obligation to demand delivery, the seller's right of resale, and the reasonable time for tendering or taking delivery are questions of fact depending on the circumstances of each case. The court also emphasized the seller's obligation to keep the contract open for performance.
Final Decision: The second appeal was allowed, and the suit was dismissed. The court directed both parties to pay their respective costs.
1. The appellants (The Malabar Products & Co.) and the respondent Krishna Iyer are merchants in Mattancherry, a town situated in the vicinity of the Cochin Harbour. The respondent is permanently residing at Trichur, a town 50 miles away, but has a local agent, Achutha Bhat. The offices of the parties are located within a furlong of each other with facility for easy and immediate communication. There is an Oil Merchants' Association at the place but both parties not having been its members at the relevant time, the rules of that body do not fall to be applied.
2. On the 28th June 1946, at about 4 p.m. the plaintiff agreed to sell and the defendants agreed to purchase 25 candies of 'clean' cocoanut oil at Rs. 560/- per candy. The transaction was put through by broker Viswam. There is no document to evidence the terms of the contract.
3. The plaintiff is not a stockist nor has he a godown. Adam Hajee Peer Mohammed Issac and Oosman Abdul Rahiman were under contracts to supply oil to him wherefrom the above 25 candies could be delivered. On 29th June 1946 the appellants wrote to the respondent as under:
"Dear Sir,
With reference to your sale to us thro' Broker Viswam, 25 candies ready clean C.N. oil on 28.6.46 at Rs. 560/- per candy and asked us to take delivery today from M/s. Adam Haji Peer Mohammed Issac.
Upon your order through your agent we have sent our empty tins to their office and on request for the delivery they replied that their contract is to delivery on the 3rd July 1946 and not before. As we have bought this oil from you for our urgent need of shipment, and upon your failure of making arrangement of delivery, we are forced to cancel the same by this letter which please note.
Yours faithfully,
Sd/- K.P. Apte,
For The Malabar Products & Co." The respondent's reply was as follows:
"Cochin, 1.7.1946. M/s. The Malabar Products & Co.
Cochin.
Dear Sirs,
I am in receipt of your letter of the 29th inst. and am surprised to note contents. Contracts once entered into cannot be cancelled. As soon as the sale was effected on 28th inst. you were asked to take delivery of the same from M/s. Adam Hajee Per Mohamed or M/s. Oosman & Abdurahim Co., at your option and it is none of our mistake. I have instructed M/s. Oosman Abdulrahiman & Co. to give you delivery. If you fail to take delivery of the said 25 candies before 4 p.m. 2nd July the same will be sold on your account and risk which please note.
Yours faithfully, Sd/
For T.V. Krishna Iyer".
On 3rd July 1946 the respondent wrote the following letter to the appellant enclosing a debit note for Rs. 250:
"Dear Sirs,
With further reference to my letter dated 1.7.46, as you have failed to take delivery of the said 25 cdys., I have sold the same on your a/c. to Sait Aboo Talib Momed Sidik @ Rs. 550/- per cdy. through Brokers Oosman Hasan & K.S. Viswanath. I enclose herewith the debit note for Rs. 250/-
(Two hundred and fifty) which amount kindly remit to me without delay. Yours faithfully,
Sd/
For T.V. Krishna Iyer".
The buyer was the agents of Adam Hajee Peer Mohammed Issac. The appellants repudiated the respondent's claim, returned the debit note and wrote back thus:
"Cochin, 3.7.1946. Dear Sir,
We have received your letter of today's date enclosing your claim bill for Rs. 250/- and note the contents with surprise.
In reply we call your attention to our letter of 29th ultimo in this matter.
Your action contrary to the contents referred in our above letter will not affect us in any way and we are not liable to you to your loss in sales of your goods and to accept your Bill and pay the amount to you.
We, therefore, call upon you, your further action in this matter will put you liable for our loss and difficulties incurred to us.
We, therefore, return your claim Bill here enclosed as we are nor liable to accept your Bill sent contrary to our letter of 29th ultimo which please note.
Yours faithfully, Sd/- K.P. Apte,
For The Malabar Products & Co."
The relevant facts have to be gathered from and the r
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.