Case Note & Summary
The plaintiff, M/s. Sync Overseas Marketing Pvt. Ltd., placed an order with the defendants, M/s. Girivijay Enterprises & ors., on 14th October 1995 for supply of 1000 pieces of base plates and 300 pieces of C.I. Housing for a total consideration of Rs.1,06,000/-. The plaintiff paid an advance of Rs.30,000/- by cheque dated 19th October 1995, which was realized. Delivery was to be made on or before 15th November 1995. The defendants made only part delivery of 100 pieces of MS base plates on 20th December 1995 worth Rs.21,350/-. The balance of Rs.8,650/- remained with the defendants. The plaintiff wrote a letter dated 20th March 1996 demanding the balance. In the first week of July 1996, defendant No.2 approached the plaintiff, expressed difficulties, and promised to deliver goods, requesting an additional advance of Rs.25,000/-. The plaintiff gave a cheque of Rs.25,000/- on 25th July 1996 in the name of defendant No.1, which was encashed on 26th July 1996. However, the defendants failed to deliver the remaining goods. The plaintiff filed a suit for recovery of the advance amounts. The trial court decreed the suit in favor of the plaintiff. The defendants appealed. The High Court, after considering the written submissions and record, held that the defendants were liable to refund the balance advance amount of Rs.8,650/- and Rs.25,000/- with interest at 12% per annum from the date of suit till realization. The appeal was dismissed.
Headnote
A) Contract Law - Breach of Contract - Advance Payment - Refund - Defendants failed to deliver goods after receiving advance payments of Rs.30,000/- and Rs.25,000/- from plaintiff - Only part delivery of Rs.21,350/- made - Balance advance of Rs.8,650/- and Rs.25,000/- not refunded - Held that defendants are liable to refund the balance advance amount with interest at 12% per annum from the date of suit till realization (Paras 1-3).
Issue of Consideration
Whether the defendants are liable to refund the balance advance amount of Rs.8,650/- and Rs.25,000/- with interest for failure to deliver goods as per the contract.
Final Decision
Appeal dismissed. Defendants liable to refund balance advance amount of Rs.8,650/- and Rs.25,000/- with interest at 12% per annum from the date of suit till realization.
Law Points
- Contract
- Breach of Contract
- Advance Payment
- Refund
- Interest
