Law: Sale of Goods Act, (III of 1930)

Section: 17,58,57

Law: Specific Relief Act, 1877

Section: 42,54,56,56(d)

(a) Sale of Goods Act (III of 1930)--Ss. 17 & 58 Specific Relief Act (1 of 1877), Ss. 42, 54 & 56 ¬Cancellation of contract of supply of goods Suit for declaration and permanent injunction Plaints: Plaintiff supplied goods to defendants according to sample and specification, but defendants, despite expressing satisfaction with regard to the use and quality of goods, cancelled contract at the risk and cost of plaintiff, asking plaintiff to deposit amount as damages Plaintiff in his suit had sought declaration that letter canceling contract and demanding amount as damages be declared illegal, null and void Plaintiff had fully proved that goods supplied were according to sample and specification and defendants also could not produce evidence to show that goods were not in accordance with sample and specification In absence of any cogent reasons defendants could not cancel contract at the risk and cost of plaintiff merely on basis of inspection note which otherwise was not tenable and defect, if any, in goods was also rectifiable. (b) Sale of Goods Act (III of 1930) Ss. 17, 57 & 58 Cancellation of contract Damages, demand for Where goods were ordered to be supplied in particular brand and names and were supplied accordingly, but contract was cancelled by purchasers without any cogent reasons, demand of damages from supplier of goods would not be lawful when after cancellation of contract purchasers proceeded to purchase goods of different name and brand from market at three times higher price. (c) Specific Relief Act (1 of 1877) Ss. 42, 54 & 56(d) Suit for declaration and permanent injunction Bar of suit Suit was dismissed by Trial Court observing that relief prayed for in the suit constituted interference with working of Federal Government Observation was without any basis as plaintiff in the suit had sought injunction restraining defendants from recovering suit amount wrongly being claimed by defendants as damages for breach of contract and there was no question of any interference in working of Government--Judgments and decrees of Courts below which were result of complete misreading rather non reading of evidence on record, were set aside by…

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