Bombay High Court Allows Suit for Recovery of Price of Goods Supplied Under Contract with State Government — Interest Awarded at 6% per annum from Date of Suit. Plaintiff proved supply of pesticides and defendant's failure to pay balance price.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, M/s. Devidayal Sales Pvt. Ltd., filed a suit against the State of Maharashtra for recovery of Rs. 2,56,560/- with interest. The plaintiff had supplied pesticides (Endrin 20% E.C., Carbaryl 10% Dust, and Carbaryl 50% W.P.) to the defendant pursuant to a tender and subsequent acceptance. The defendant accepted the goods but failed to pay the full price. The court found that the plaintiff had proved the supply and the defendant's liability. The suit was decreed for Rs. 2,48,910/- with interest at 6% per annum from the date of suit till payment.

Headnote

A) Contract Law - Sale of Goods - Recovery of Price - Plaintiff supplied pesticides to defendant State under a contract - Defendant accepted goods but failed to pay full price - Court held that plaintiff is entitled to recover the balance price of Rs. 2,48,910/- with interest at 6% per annum from date of suit till payment (Paras 1-10).

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Issue of Consideration

Whether the plaintiff is entitled to recover the price of goods supplied to the defendant and interest thereon.

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Final Decision

Suit decreed in favour of the plaintiff for Rs. 2,48,910/- with interest at 6% per annum from the date of suit till payment

Law Points

  • Contract
  • Sale of Goods
  • Interest
  • Limitation
  • Government Contract
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Case Details

2006 LawText (BOM) (03) 56

SUIT NO. 530 OF 1979

2006-03-24

S.U. KAMDAR, J.

Mr. Girish Desai with Miss Rupal Narialwala i/by M/s. Gordhandas & Fozdar for plaintiffs; Mr. Denzil D'mello, AGP for defendants

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Nature of Litigation

Civil suit for recovery of money

Remedy Sought

Plaintiff seeks recovery of Rs. 2,56,560/- with interest at 15% per annum from the date of suit till payment

Filing Reason

Defendant failed to pay the full price for goods supplied

Issues

Whether the plaintiff is entitled to recover the balance price of goods supplied to the defendant

Submissions/Arguments

Plaintiff argued that goods were supplied and accepted but payment not made Defendant argued that goods were not as per specification or that payment was not due

Ratio Decidendi

The plaintiff proved supply of goods and defendant's failure to pay; hence entitled to recovery with interest.

Judgment Excerpts

The present suit is filed for recovery of a sum of Rs. 2,56,560.00 with further interest on the Rs. 2,48,910.00 at the rate of 15% per annum from the date of the suit till payment and/or realisation.

Procedural History

Suit filed in 1979; judgment delivered on 24th March 2006.

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