Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 63 :-- Damages for wrongful termination of contract - Appellant entered into an agreement with respondent for establishment of non-alcoholic beverages bottling plant Contract Act 1872 - ss. 73 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Contract Act, 1872 - ss. 73, 63 :-- Damages for wrongful termination of contract - Appellant entered into an agreement with respondent for establishment of non-alcoholic beverages bottling plant - The concentrate (essence), for preparation of the non -alcoholic beverage, was to be supplied by the respondent - Loan advanced to the appellant by State Industrial Development Corporation(WBIDC) for establishment of the bottling plant - Bottlers agreement was terminated by the respondent, on which appellant filed suit - Single Judge of High Court decreed suit in favour of appellant awarding damages towards loss of anticipated profits and costs for installation of the plant - Division Bench in appeal reversed the decree and dismissed the suit - Propriety - Held: Proper - It cannot be held that the breach alone was the cause for loss of anticipated profits, much less it was the primary or dominant reason - As per materials on records, appellant had thanked respondent for its advertising support - Appellant had acknowledged that it would continue to suffer losses for jive-six years while seeking long term credit for supply of concentrates and had failed to deploy adequate manpower as per its own projections, this itself demonstrated the poor financial condition of the appellant - Losses were reflected in its balance sheet - It cannot be held that breach by the respondent was the dominant cause for loss of anticipated profits - Appellant failed to take steps to mitigate its losses, as it stopped lifting concentrates from another company after having done so for nearly a year without any explanation and didn't take steps to sell the unit after its closure, rather did that belatedly after seven years - Therefore, appellant failed to abide by its own obligations and lacked adequate infrastructure, .finances and manpower to run its business. Contract - 'Reliance loss' and 'Expectation loss' - Discussed |
Judge | Hon'ble Mr. Justice Navin Sinha |
Neutral Citation | 2017 INSC 480 |
Petitioner | Kanchan Udyog Limited |
Respondent | United Spirits Limited |
SCR | [2017] 7 S.C.R. 175 |
Judgement Date | 2017-06-19 |
Case Number | 1168 |
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