2001 (6) TMI 822 - HC - Companies Law

Court Rules in Favor of Plaintiff in Goods Delivery Dispute

The court determined that the delivery of goods and transfer of property occurred by 9th June 1995, making the defendant liable for payment. The plaintiff ... - Issues Involved:1. Determination of delivery date and transfer of property in goods.2. Payment obligations under the contract.3. Dispute over the quantity of goods delivered.4. Applicability of the arbitration clause.5. Award of interest and costs.Issue-wise Detailed Analysis:1. Determination of Delivery Date and Transfer of Property in Goods:The central question was when the delivery took place and the property in goods passed from seller to buyer. The court held that delivery occurred at the latest on 9th June 1995. Correspondence between the parties indicated that the defendant accepted the delivery of 14,250 MT of goods on this date, thereby making them liable for payment. The court cited Section 33 of the Sale of Goods Act, emphasizing that delivery is effected when goods are put in the possession of the buyer or an authorized person.2. Payment Obligations Under the Contract:The contract stipulated payment on a COD (cash on delivery) basis. The plaintiff had submitted all required documents, including a commercial invoice and weight and quality certificates from an independent surveyor (SGS). The court found that the plaintiff complied with all contractual conditions, entitling them to payment upon delivery. The defendant's argument linking payment to the dispatch of goods was rejected, as it was contrary to the contract's COD terms.3. Dispute Over Quantity of Goods Delivered:The defendant claimed they received only 13,941.500 MT instead of the agreed 14,250 MT. However, the plaintiff provided sufficient proof, including a weight certificate and confirmation letters from the clearing agent, indicating the delivery of 14,250 MT. The court found the defendant's dispute over quantity to be an afterthought, as they had accepted the quantity at the time of delivery and issued dispatch instructions for the entire consignment.4. Applicability of the Arbitration Clause:The defendant initially raised the existence of an arbitration clause as a defense. However, this point was decided against them, and during the appeal, the defendant's counsel did not address it, effectively abandoning this defense.5. Award of Interest and Costs:The plaintiff claimed a principal amount of Rs. 1,05,55,490/- and additional interest, totaling Rs. 1,37,22,137/-. The court awarded interest at 18% per annum on the principal amount from the date of the suit's institution until realization. The transaction was deemed a commercial one, justifying the high interest rate due to the prolonged deprivation of the plaintiff's funds.Conclusion:The court endorsed the findings of the learned Single Judge, affirming that the plaintiff had transferred possession and property in goods to the defendant by 9th June 1995. The defendant was liable for the price of 14,250 MT of goods. The appeal was dismissed with costs, and the award of interest was upheld. The preliminary objection regarding the maintainability of the appeal due to the absence of a certified copy of the judgment was dismissed, as the appellant had applied for it but had not yet received it.