M/S. MURLIDHAR CHIRANJILAL versus M/S. HARISHCHANDRA DWARKADAS AND ANOTHER

M/S. MURLIDHAR CHIRANJILAL versus M/S. HARISHCHANDRA DWARKADAS AND ANOTHER

The contract was for delivery f.o.r. Kanpur, and there is no evidence that the seller knew the goods would be resold only in Calcutta; thus, damages must be measured as the difference between the Kanpur market rate on the date of breach and the contract price. Since the respondent failed to prove the Kanpur market rate, no damages are payable.

Parties
Appellant: M/s. Murlidhar Chiranjilal; Respondent: M/s. Harishchandra Dwarkadas; Respondent: Babulal
Jurisdiction
India
Judgment Date
29 March 1961
Procedural Posture
Civil Appeal / Appeal by Special Leave From a High Court Judgment
Outcome
Appeal allowed
Legal Topics
Damages, Measure of Damages, Breach of Contract, Sale of Goods
Contract Law Damages Measure of Damages Breach of Contract Sale of Goods

Case Brief

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Parties

M/s. Murlidhar Chiranjilal

Appellant

M/s. Harishchandra Dwarkadas

Respondent

Babulal

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From a High Court Judgment

Legal Issues

  1. 1 What is the correct measure of damages for breach of contract for sale of goods where delivery was to be made f.o.r. Kanpur for further transport to Calcutta?
  2. 2 Is the seller liable for damages based on the market price at Calcutta or Kanpur when the contract is for f.o.r. delivery at Kanpur?

Ratio Decidendi

The contract was for delivery f.o.r. Kanpur, and there is no evidence that the seller knew the goods would be resold only in Calcutta; thus, damages must be measured as the difference between the Kanpur market rate on the date of breach and the contract price. Since the respondent failed to prove the Kanpur market rate, no damages are payable.

Court Disposition

Appeal allowed

Orders

  • Decree of the High Court set aside
  • Decree of the trial court restored