Madras High Court
Ambika Palayakat Company vs N. Kannappa Pillai on 13 April, 1951
Equivalent citations: AIR1952MAD91, (1951)IIMLJ182, AIR 1952 MADRAS 91
ORDER Satyanarayana Rao, J.
1. I think the view taken by the lower Court regarding the payment of court-fee is correct. The suit was for recovery of the price of goods sold by the plaintiff to the defendant, and the defendant claimed damages under two heads: a sum of Rs. 2274-3-0 as damages for breach of warranty, namely, that the goods did not answer the description of the goods in respect of which the contract of sale was entered into; and a sum of Rs. 3000 as damages for loss of reputation. The lower Court held that the defendant was entitled to claim the sum of Rs. 2274-3-0 without paying court-fee as an amount which could be considered in diminution of the price that was claimed, but not the sum of Rs. 3000, and therefore it directed that the defendant should pay court-fee on Rs. 3000 if it intended to prosecute the claim as a set-off. It is contended that this sum of Rs. 3000 is also loss which has directly resulted by the breach of warranty. It is difficult to accept this contention in support of which no authority has been cited. The direct loss by reason of the breach of warranty is the loss in the value of the goods, as inferior goods were supplied according to the defendant's contention in place of superior goods for which it bargained with the plain-tiff. The damages for reputation may be further damages which it had suffered, but it cannot claim the amount to be taken into consideration in diminution of the price for which the plaintiff instituted the suit. These damages are not the direct result of the breach of warranty and they may be further damages within the meaning of Section 59, Sub-section (2) of the Sale of Goods Act. The view taken therefore by the lower Court that if the defendant wishes to prosecute the claim, it must pay court-fee on the sum of Rs. 3000 is correct.
2. The civil revision petition fails and is dismissed with costs payable to the Govern ment Pleader. The petitioner is granted two weeks' time from this date for payment of the court-fee on the sum of Rs. 3000.