Case Note & Summary
The plaintiffs, New Standard Engg. Co. Ltd., filed a suit against Karnataka Power Corpn. Ltd. for recovery of Rs. 3,08,650/- with interest on Rs. 1,75,256/-. The claim arose from a contract for supply of a 70 ton capacity Hoist. The defendant issued a tender notice on 20.1.1975, and the plaintiffs submitted an offer on 11.2.1975 for supply at Rs. 4,22,370/-. The offer was accepted by the defendant on 13.6.1975. The plaintiffs revised payment terms on 19.6.1975. The plaintiffs supplied the hoist, but the defendant failed to pay the balance amount. The court examined the evidence and found that the defendant had taken delivery and used the hoist, thus was liable to pay. The court decreed the suit in favor of the plaintiffs for Rs. 1,75,256/- with interest at 6% per annum from the date of suit till realization, and proportionate costs.
Headnote
A) Contract Law - Sale of Goods - Recovery of Price - The plaintiffs supplied a hoist to the defendant as per contract; defendant failed to pay the balance price despite taking delivery - Held that the defendant is liable to pay the agreed price with interest (Paras 1-10).
Issue of Consideration
Whether the plaintiffs are entitled to recover the balance price of goods supplied under a contract, and whether the suit is within limitation.
Final Decision
Suit decreed in favor of the plaintiffs for Rs. 1,75,256/- with interest at 6% per annum from the date of suit till realization, with proportionate costs.
Law Points
- Contract for sale of goods
- Breach of contract
- Recovery of price
- Interest
- Limitation
