9911796707
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Issues:
1. Validity of the contract and delivery of goods. 2. Notice of intended sale and exercise of seller's lien. 3. Interpretation of Section 54 of the Sale of Goods Act. 4. Buyer's false denial of contract and its impact on penalty clause. 5. Seller's right to re-sale under Section 54(2) and independent right to sue for price. Detailed Analysis: 1. The suit involved a dispute between a cloth merchant (respondent) and a firm of cloth merchants (appellant) regarding the purchase of silk. The respondent alleged that the appellant's partner purchased silk but failed to take delivery, leading to a resale at a lower price due to government price controls. The appellant denied the contract but admitted receiving some goods. The lower court decreed the suit in favor of the respondent. 2. The appellant appealed, conceding the contract but disputing notice of intended sale. The appellate court examined the evidence and found no notice was given by the respondent to the appellant about the intended sale. The court analyzed the seller's lien under Section 47 and the penalty clause in Section 54(2) of the Sale of Goods Act. 3. The court rejected the respondent's argument that the penalty clause did not apply due to the seller not exercising the lien. It held that the respondent did exercise the lien and intended to act under Section 54(2) despite failing to provide notice of the re-sale to the buyer, thereby incurring the penalty. 4. The court addressed the contention that a false denial of the contract by the buyer should impact the penalty clause. It ruled that the buyer's false denial did not exempt them from the penalty clause under Section 54(2) of the Act. 5. Lastly, the court discussed the respondent's dual rights under Section 54(2) for re-sale and Section 55 to sue for the price of goods. It concluded that damages could not be claimed for the 57 thans of silk, but the appellant owed for the 10 thans received. The court modified the decree, allowing the appeal in part and decreeing the suit for a specific sum with interest. Costs were to be paid based on the success and failure of both parties in the courts. This judgment highlights the importance of contractual obligations, notice requirements, and the application of relevant sections of the Sale of Goods Act in resolving disputes between buyers and sellers.
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