Professional Documents
Culture Documents
January 12, 2014 by Vivek Kumar Verma in Contract Law, Indemnity and Guarantee, Sale
of Goods.
Section 13 (2) of the Indian Sale of Goods Act, 1930, clearly states that where there is a
warranty then at best the purchaser can raise a claim for damage but cannot repudiate
the transaction itself as is being sought to be done by the Corporation. This section was
read with Section 59 of the Act. Section 59 says that a buyer is not by reason of a breach
of warranty (by the seller) entitled to reject the goods. He may sue for damages or for
breach of warranty. Here too, the Respondents, after using the machines for a long time,
cannot simply return the machines to the appellants without payment for the machines.
The court eventually held that the Respondent-Corporation is at fault in law for the nonpayment. The facts are merely a pretext to withhold the payment.
Conclusion: Respondents were held to be liable to pay for the fogging machines as they
could not legitimately return the machines after use/ repudiate the transaction.