Decided on December 04,1950

Maharajsingh Swaisingh Appellant
Narayansingh Devisingh And Another Respondents

Referred Judgements :-



Shinde, J. - (1.)THIS is a revision by the deft. against the judgment & decree of the Dist. J. of Gwalior. The pltf. filed a suit against Maharajsingh & Layakram in the Ct. of Pragana Girda for the recovery of Rs. 380 on the ground that the deft, had entered into a contract with the pltf. to supply 20 Khandis (400 Mds.) of wood at the rate of Rs. 11 a Khandi & had also taken an advance of Rs. 200 & he broke the contract. The sum of Rs. 380 claimed from the deft, consisted of the advance of Rs. 200 & damages of Rs. 180. The trial Ct. decreed the suit only to the extent of Rs. 200. Both the deft. & the pltf. filed appeals in the Ct. of the Dist. Sub -Judge, Gwalior. The Dist. Sub -Judge allowed the appeal of the deft. & dismissed the suit of the pltf. in toto. Against this decision, the pltf; filed an appeal in the Ct. of the Dist. J., Gwalior, who decreed the entire suit of the pltf. Hence the deft, has filed this revision.
(2.)THE question raised in revision is that the damages claimed by the pltf. being too remote, the lower Court was wrong in allowing them. The question as to whether the contract has been broken by the deft, or not being a question of fact, it cannot be agitated in revision. The only question, therefore, for consideration is whether the damages claimed by the pltf. can be decreed against the deft, or not. Under S. 73, Contract Act only such damages are allowable as naturally arise in the usual course of things from breach of contract or as the parties know, when they make the contract, to be likely to result from the breach of it. Neither a persual of the contract nor the evidence on record shows that the parties bad entered into a contract for the supply of wood in order that the pltf. may sell it at the rate of Rs. 20 a Khandi. It is no doubt true that the pltf. owns a wood stall & that deft. was aware of this fact. But he had no knowledge that the pltf. wanted wood for re -sale at his stall at a stipulated rate. Hence the deft. is not liable for loss of profit. The case of Hadley v. (sic),, (1874) 9 EX. 341 : (23 L.J. Ex. 179) is a noted English case on the point. (Vide Illus. (i) & (j) to S. 73, Contract Act, & Contract Act by Pollock & Mulla, 7th Edn. at pp. 390 & 391 Note of special circumstances & Note of contract of re -sale). Under these circumstances, the pltf. is entitled to get only such damages as naturally arise in the usual course of things from the, breach of the contract. The measure of damages upon a breach is a difference between the contract price & the market price on the date of the breach. It is not necessary to prove that the buyer sustained any actual loss from the seller's failure to deliver goods. The buyer is entitled to receive from the seller by way of compensation the sum by which the contract price falls short of the price for which the buyer might have, obtained the goods of like quality at the time when they ought to have been delivered. (Vide Ismail Sait & Sons v. Wilson & Co.,, 41 Mad. 709: (A.I.R. 1919 Mad. 1053) & Erroll Mackay v. Kameshwar Singh, : 11 pat. 600 : (A.I.R. 1932 P.C. 196). But the pltf has adduced no evidence to prove what the market price of the wood of the kind contracted for was at the time when it ought to have been delivered. The only evidence that he has adduced is that he sold the wood at his stall at the rate of Rs. 20 a Khandi at the time of the breach of contract. Under these circumstances damages cannot be assessed. The lower Ct. was wrong in giving the pltf. compensation for loss of profit at the rate of Rs. 9 a Khandi. As pointed out above, damages for loss of profit can only be given when the parties have knowledge at the time of entering into the contract that they would result from the breach of it. In my judgment, therefore, the revision should be accepted.
In the result I allow the revision & set aside the decree of the lower Ct. in respect of damages. The petnr. to get his proportionate costs from the opposite party throughout.


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