Sections used in the case:

1. Section 16 (1) & (2) of the Sales of Goods Act, 1930

2. Section 40 of the Sales of Goods Act,1930
3. Section 61(1) of the Sales of Goods Act, 1930

Section 16 (1) & (2) of the Sales of Goods Act, 1930

“Implied conditions as to quality or fitness— Subject to the provisions of this Act and of any
other law for the time being in force, there is no implied warranty or condition as to the
quality or fitness for any particular purpose of goods supplied under a contract of sale.”

The defendant supplied defective and inferior quality of goods causing breach of implied
condition as to quality and fitness and is liable to refund the money.

Section 40 of the Sales of Goods Act,1930

“Risk where goods are delivered at distant place—Where the seller of goods agrees to deliver
them at his own risk at a place other than that where they are when sold, the buyer shall,
nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily
incident to the course of transit.”
In the invoice no. 19 dated 26.09.2012, it was mentioned that material received without
packaging and in loose condition.

Section 61(1) of the Sales of Goods Act, 1930

“Interest by way of damages and special damages—
Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special
damages in any case where by law interest or special damages may be recoverable, or to
recover the money paid where the consideration for the payment of it has failed.”

Plaintiff is entitled to recover the money back as consideration for paying money has failed.
Framed Issues:
i. Whether the Plaintiff is entitled for a decree of recovery of Rs. 7,51,144.20/- along
with pendent elite interest @ 18% per annum against the defendant as claimed in the
plaint? OPP
issue no 1 is decided against the plaintiff. Issue with regard to cause of action and
clean hands are decided accordingly.
ii. Whether the present suit has been filed, signed and verified on behalf of the plaintiff
by properly authorized person? OPP.
issue is decided against the plaintiff and in favour of the defendant
iii. Whether this court has no territorial jurisdiction to try this suit? OPD.
this issue is decided against the defendant and in favour of plaintiff.
iv. Whether plaintiff has no cause of action to file the present suit? OPD.
v. Whether plaintiff has not come to this court with the clean hands and has suppressed
the material facts, if so, to what effect? OPD.
vi. Whether this suit is barred by the provisions of Order XXX Rule 10 CPC? OPD.
this issue is decided against the defendant and in favour of the plaintiff.