Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Indian contract act 1872 Province accepting performance from third person authorities refused to make payment If can sue promisor for balance |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Contract—Province accepting performance from third person in full satisfaction of claim—If can sue promisor for balance— Indian Contract Act, 1872 (9 of 1872), 88. 41, 63, illustration (c),In January 1937 one M & Co. sold and delivered jewellery valued at about.13 lakhs to the respondent, the Prince of Berar. The Prince acknowledged in writing the purchase of the jewellery and the price thereof and passed various acknowledgements in respect of the debts due and the last of such acknowledgements was made for sum of Rs. 27,79,000. In April 1948, the appellants presented their bill and were informed in January, 1949, that the Nizam had passed the bill. In February, 1949, when Hyderabad was under military occupation, a Committee was set up by the Military Governor to scrutinise all debts of the Prince of Berar and his younger brother. The claim of the appellants was considered by the Committee which recommended that the appellants should be paid a sum of Rs. 20 Lakhs in full satisfaction of their claim. The appellants were paid the sum of Rs. 20 lakhs in two instalments. The appellants tried to pass a receipt when they received the second instalment reserving their right to recover the balance under the pronote from the Prince of Berar. The relevant authorities refused to make payment on the said receipt. Thereupon the appellants discharged all the previous pronotes and on each one of them recorded a satisfaction of the full amount. The appellants thereafter sued the respondent for the recovery of the balance of the monies due to them on the pronote. The trial court decreed the suit on the ground that there was no accord and satisfaction when the plaintiff received the second cheque from the Accountant General, Hyderabad. In appeal by the respondent the Appellate Court set aside the decree holding that the appellants had accepted the sum of Rs. 20 lakhs in full satisfaction of their claim and duly discharged the promisory notes by endorsing full satisfaction thereon.The appellants came up to the Supreme Court in appeal by certificate granted by the High Court. Held, that when payment is accepted on the condition on which it is offered, it is not open to the person receiving the payment to say, either in fact or in law, that they have accepted the money but not the condition. A promisee accepting performance of the promise from a third person, can not afterwards enforce it against the promiser. In the present case the appellants had given a full discharge when they received the second instalment; and as they accepted the money in full satisfaction of their claim, they were not entitled to sue the respondent for the balance. Obiter: When a statute clearly covers the case it is hardly necessary to refer to a decision. |
Judge | Hon'ble Mr. Justice S.K Das |
Neutral Citation | 1962 INSC 142 |
Petitioner | Kapur Chand Godha |
Respondent | Mir Nawab Himayatalikhan Azamjah |
SCR | [1963] 2 S.C.R. 168 |
Judgement Date | 1962-04-12 |
Case Number | 52 |
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