Bombay High Court Allows Appeal in Seed Supply Contract Dispute — Remands Suit for Fresh Consideration on Breach of Contract and Damages. Trial Court's dismissal of suit for damages set aside due to failure to frame proper issues and consider evidence on breach of stocking agreement.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The appellant, M/s. A.S.N. Agri Genetics Private Limited, filed a suit for damages against the respondent, Basant Agro Tech (I) Limited, alleging that the respondent failed to supply 4500 quintals of raw JS335 Soyabean seeds as per an agreement dated 4.8.2007 and a stocking agreement dated 27.11.2007. The appellant had paid Rs.54,00,000 by six cheques between 24.11.2007 and 28.11.2007. The respondent denied the agreements and liability. The trial court dismissed the suit. On appeal, the High Court found that the trial court had not framed proper issues and had not considered the evidence properly. The High Court allowed the appeal, set aside the trial court's judgment, and remanded the suit for fresh decision, directing the trial court to frame proper issues and decide the suit afresh within six months.

Headnote

A) Civil Procedure - Appeal against dismissal of suit - Order 41 Rule 23A CPC - Remand - The appellate court set aside the trial court's judgment and remanded the suit for fresh decision, as the trial court failed to frame proper issues and did not consider the evidence on record regarding breach of contract and damages. Held that the trial court's approach was perfunctory and the suit deserved a fresh trial (Paras 1-5).

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Issue of Consideration

Whether the trial court erred in dismissing the suit for damages without properly framing issues and considering the evidence on record regarding breach of contract.

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Final Decision

Appeal allowed. Judgment and order dated 7.3.2015 passed by 2nd Joint Civil Judge (Sr.Dn.), Akola in Special Civil Suit No.97 of 2008 is set aside. The suit is remanded to the trial court for fresh decision. The trial court shall frame proper issues and decide the suit afresh within six months from the date of receipt of the order. Parties to appear before the trial court on 3.8.2015.

Law Points

  • Breach of contract
  • Damages
  • Framing of issues
  • Remand
  • Civil Procedure Code
  • 1908 Order 41 Rule 23A
  • Evidence appreciation
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Case Details

2015 LawText (BOM) (07) 206

First Appeal No.248 of 2015

2015-07-16

A.P. Bhangale, J.

Mr. J.T. Gilda for Appellant, Mr. R.L. Khapre for Respondent/Caveator

M/s. A.S.N. Agri Genetics Private Limited

Basant Agro Tech (I) Limited

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Nature of Litigation

Civil suit for damages for breach of contract for supply of seeds.

Remedy Sought

Refund of Rs.54,00,000 paid plus damages of Rs.40,43,914 for non-supply of goods.

Filing Reason

Defendant failed to supply 4500 quintals of raw JS335 Soyabean seeds as per agreement.

Previous Decisions

Trial court dismissed the suit on 7.3.2015.

Issues

Whether the trial court erred in dismissing the suit without framing proper issues? Whether the suit deserves to be remanded for fresh consideration?

Submissions/Arguments

Appellant argued that the trial court did not frame proper issues and did not consider evidence. Respondent opposed the appeal.

Ratio Decidendi

The trial court failed to frame proper issues and did not consider the evidence on record, necessitating a remand for fresh trial under Order 41 Rule 23A CPC.

Judgment Excerpts

The learned trial Judge by the impugned judgment and order dismissed the suit. The trial court did not frame proper issues and did not consider the evidence on record. The appeal is allowed. The suit is remanded to the trial court for fresh decision.

Procedural History

Suit filed on 19.8.2008. Trial court dismissed suit on 7.3.2015. Appeal filed on 16.7.2015.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 41 Rule 23A
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