Case Note & Summary
The plaintiff, Mukund Limited, filed a suit against the Minerals & Metals Trading Corporation of India Ltd. for recovery of Rs.1,47,906/- being the difference in price paid for short supply of Nickel, along with interest at 21% per annum, totaling Rs.2,41,001.68. The plaintiff applied for 150 metric tonnes of Nickel pursuant to a government notification and circular dated 19/04/1980. The defendant registered the plaintiff for 125 metric tonnes and issued a sale note dated 04.11.1980. The plaintiff paid the full price for 115 metric tonnes via demand draft dated 25.11.1980. The defendant issued a delivery order for 115 metric tonnes, but the plaintiff's representative could only lift three cases aggregating 890 kgs net, as the godown keeper stated that no further stock was available. The plaintiff contended that the defendant short-supplied the goods. The defendant denied short supply and claimed that the plaintiff lifted the full quantity. The court framed issues including whether the defendant short-supplied the goods and whether the plaintiff is entitled to the claimed amount. The court analyzed the evidence, including the delivery order, letters, and testimony. The court noted that the defendant failed to produce any delivery records or weighbridge receipts to prove that the full quantity was delivered. The court held that the burden of proof was on the defendant to show correct delivery, and the defendant failed to discharge it. The court found that the plaintiff proved short supply and was entitled to recover the difference in price. Regarding interest, the court found no contractual rate and awarded interest at 6% per annum from the date of suit till realization. The suit was decreed in favor of the plaintiff for Rs.1,47,906/- with interest at 6% per annum from the date of suit till payment.
Headnote
A) Contract Law - Sale of Goods - Short Delivery - Recovery of Price Difference - The plaintiff claimed refund for short supply of Nickel under a sale note - The defendant failed to prove that the full quantity was delivered - Held that the plaintiff is entitled to recover the difference in price paid for the short-supplied goods (Paras 1-10). B) Interest - Contractual Interest - Rate of Interest - The plaintiff claimed interest at 21% per annum on the amount due - The court found no contractual rate and awarded interest at 6% per annum from the date of suit till realization (Paras 11-12).
Issue of Consideration
Whether the plaintiff is entitled to recover the difference in price paid for goods that were short supplied by the defendant, and whether the plaintiff is entitled to interest on the amount.
Final Decision
Suit decreed in favor of plaintiff for Rs.1,47,906/- with interest at 6% per annum from the date of suit till realization.
Law Points
- Contract for sale of goods
- short delivery
- recovery of price difference
- interest on delayed payment
- burden of proof on seller to show correct delivery
- liability for short supply
