T V RAMALINGAM AND SONS YARN MERCHANTS MADURAI Vs. TIRUCHENDUR COOPERATIVE SPINNING MILLS LTD NAZARETH

JUDGEMENT

(1.) THE above appeal suit is directed against the decree and judgment dated 30.1.1980 made in O.S.No.127 of 1976 by the Court of Additional Subordinate Judge, Tuticorin, thereby decreeing the suit filed by the respondent- Co-operative Spinning Mills Limited, for the recover of damages on breach of contract.

(2.) THE history of the case as put forth by the respondent/plaintiff before the trial court is that the first defendant/first appellant entered into a contract with the plaintiff/respondent through the second respondent/second defendant, agreeing to purchase 5 bales of gray cotton yarn at Ex-Mill rate of Rs.124 per 4.5.kgs., and the documents were to be sent through the bank; that a contract dated 18.9.1974 had been entered into and duly signed by parties and by a letter dated 27.9.1974, the first appellant/first defendant also accepted the contract; that the second appellant/second defendant had given a sale confirmation letter dated 14.9.1974; that the first appellant, through the second appellant also entered into another contract for purchase of 4 bales of gray cotton yarn at Ex-Mill rate of Rs.195 per 4.5 Kgs. that for this order also. the documents were agreed it be sent to the bank; that accordingly, the contract dated 20.9.1974 had been entered into duly signed by parties, the first defendant accepting the contract as per his letter dated 26.9.1974 and the second defendant writing a sale confirmation letter dated 17.9.1974; that the letters of the first defendant accepting the contracts had been respectively received by the plaintiffs on 30.9.1974 and on 28.9.1974.

(3.) DURING arguments, the learned counsel appearing for the appellants would contend that he is representing the buyer and the other side is representing the Co-operative Mills, and regarding certain facts, there is no dispute at all; that the contract was for the sale of cotton yarn by Exs.A-23 and A-25, wherein five bales of cotton was ordered to be supplied to the buyer, that the contracts were dated 14.9.1974 and 17.9.1974; that the second defendant is the broker, who brought about the contract; that he is the first defendant/purchaser and both are appellants herein and they both are from Madurai; that the plaintiff's Mill is located at Nazarath in Tuticorin District; that the suit had been laid before the Sub Court, Tuticorin, and admittedly since the contract was entered into at Madurai and money is payable at Madurai and since it is the contract for sale of goods, the Sale of Goods Act also comes into operation; that the learned Judge's reasoning regarding the jurisdiction question is against law; that the case is governed by the Sale of Goods Act, where the damage occurs, and the buyer refuses to take delivery; that under Sale of Goods Act, re-sale could be resorted to only when the property in the goods have been passed on and there is a default on the part of the buyer, that under these circumstances, Sec.18 of the Sale of Goods Act comes into operation.