Bombay High Court Partially Allows Appeal in Contract for Printing Identity Cards — Quantum of Damages Reduced Due to Lack of Evidence of Actual Loss. The court enhanced the decree from Rs.20,337.62 to Rs.50,000/- under Section 73 of the Indian Contract Act, 1872, as the plaintiffs failed to prove the full extent of work done.

High Court: Bombay High Court
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Case Note & Summary

The appellants, M/s. Fixophotos and its partners, filed a suit against the respondent, Nashik Merchants’ Co-operative Bank Ltd., for recovery of Rs.2,09,350/- for work done under a contract dated 25.7.1983 for printing 16,000 identity cards of the bank's members. The trial court decreed only Rs.20,337.62 in favor of the plaintiffs. Dissatisfied, the plaintiffs appealed. The High Court observed that the plaintiffs had not produced sufficient evidence to prove the actual value of work done or the loss suffered. The court noted that the work order specified a cost of Rs.11.25 per photograph (exclusive of sales tax), but the plaintiffs did not prove that they had taken photographs of all 16,000 members or that they had incurred expenses beyond the amount awarded. The court also noted that the plaintiffs had received some advances and had not accounted for them. Considering the circumstances, the High Court held that the plaintiffs were entitled to a total decree of Rs.50,000/- instead of Rs.20,337.62, and accordingly partly allowed the appeal.

Headnote

A) Contract Law - Breach of Contract - Quantum of Damages - Section 73 Indian Contract Act, 1872 - The plaintiffs claimed Rs.2,09,350/- for work done under a contract for printing 16,000 identity cards. The trial court granted only Rs.20,337.62. The High Court held that the plaintiffs failed to prove actual loss or the value of work done beyond the amount awarded, and thus the appeal was partly allowed by enhancing the decree to Rs.50,000/-. (Paras 1-10)

B) Evidence - Burden of Proof - Quantum of Damages - The plaintiffs did not produce sufficient evidence to show the extent of work completed or the actual loss suffered. The court noted that the plaintiffs had not proved that they had taken photographs of all 16,000 members or that they had incurred expenses beyond the amount awarded. (Paras 5-9)

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Issue of Consideration

Whether the plaintiffs are entitled to the full claimed amount of Rs.2,09,350/- for work done under a contract for printing identity cards, and whether the trial court correctly assessed damages at Rs.20,337.62.

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Final Decision

The appeal is partly allowed. The decree of the trial court is modified, and the plaintiffs are entitled to a total decree of Rs.50,000/- instead of Rs.20,337.62. The respondent-bank is directed to pay the enhanced amount with interest at 6% per annum from the date of suit till realization.

Law Points

  • Contract
  • Damages
  • Breach of Contract
  • Quantum of Damages
  • Burden of Proof
  • Section 73 Indian Contract Act
  • 1872
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Case Details

2005 LawText (BOM) (02) 299

First Appeal No.1021 of 1994

2005-02-11

D.G. Deshpande

Mr. S.R. Rawell i/by S.R. Rawell and Company for the appellants, Mr. K.S. Patil for the respondent

M/s. Fixophotos, Shri. Harish Laxmichand Sanghavi, Shri. Laxmichand Chhabildas Sanghavi, Shri. Shailesh Laxmichand Sanghavi, Mrs. Usha Lalwani

The Nashik Merchants’ Co.operative Bank Ltd.

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Nature of Litigation

Civil appeal against a decree in a suit for recovery of money for work done under a contract.

Remedy Sought

The appellants (original plaintiffs) sought recovery of Rs.2,09,350/- from the respondent-bank for printing identity cards.

Filing Reason

The trial court granted only Rs.20,337.62, and the plaintiffs were dissatisfied with the quantum.

Previous Decisions

The trial court decreed Rs.20,337.62 in favor of the plaintiffs.

Issues

Whether the plaintiffs are entitled to the full claimed amount of Rs.2,09,350/- for work done under the contract. Whether the trial court correctly assessed damages at Rs.20,337.62.

Submissions/Arguments

The appellants argued that they had completed the work and were entitled to the full amount. The respondent-bank contended that the plaintiffs failed to prove the extent of work done and the actual loss.

Ratio Decidendi

In a claim for damages for breach of contract, the plaintiff must prove the actual loss suffered. The court cannot award damages based on speculation. The burden of proof lies on the plaintiff to show the extent of work done and the value thereof.

Judgment Excerpts

The plaintiffs had not produced sufficient evidence to prove the actual value of work done or the loss suffered. Considering the circumstances, the High Court held that the plaintiffs were entitled to a total decree of Rs.50,000/- instead of Rs.20,337.62.

Procedural History

The original plaintiffs filed a suit for recovery of Rs.2,09,350/-. The trial court decreed Rs.20,337.62. The plaintiffs appealed to the High Court.

Acts & Sections

  • Indian Contract Act, 1872: 73
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