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1965 DIGILAW 26 (MAD)

Rajagopal Naidu v. Aiyyaswamy Chettiar

1965-01-25

K.S.RAMAMURTI

body1965
Judgment - The plaintiff who has failed in the Courts below, on a question of limitation, is the appellant in this Second Appeal The plaintiff had a subsisting lease with the 2nd defendant over a premises in a busy locality in Rangai Gowder Street Coimbatore. During the currency of that lease, the 2nd defendant granted a lease to the 1st defendant. The plaintiff agreed to surrender his right as lessee over the premises and in consideration thereof, an agreement Exhibit A-2, dated 29th December, 1952 was entered into between the 1st and 2nd respondents to the effect that for a period of 15 days, at the time of Deepavali each year, the plaintiff would be permitted to occupy the downstairs portion in the premises to sell crackers. Even though this agreement purports to be one between the 1st and 2nd defendants, the recitals of the agreement taken along with the fact that the plaintiff himself has signed this agreement, leave no room for doubt that the plaintiff also should be regarded as a party to the agreement. On 17th October, 1953 the plaintiff issued a notice to both the defendants asking for possession of the premises for a period of 15 days as specified in the agreement. But this claim was repudiated by the defendants on 26th October, 1953. The result was that the plaintiff who had purchased crackers with a view to sell them during Deepavali season and make profit, could not do so, and from the evidence it appears that the plaintiff sold his entire stock only by 13th November, 1953. As the plaintiff was deprived of a good opportunity of carrying on business in Rangai Gowder Street, he sustained damage to the tune of Rs. 5,200. This sum of Rs. 5,200 is the loss which he had sustained in respect of the capital invested by him. It may be mentioned that the plaintiff filed the suit O.S. No. 302 of 1954 for enforcing his rights under the agreement Exhibit A-2 and the same has been dismissed. The Courts below have held that the suit O.S. No. 302 of 1954 does not operate as a bar to the present claim. Nothing turns upon this aspect of the matter. Both the Courts have held that the plaintiff had made out that he had sustained damages as stated above. The Courts below have held that the suit O.S. No. 302 of 1954 does not operate as a bar to the present claim. Nothing turns upon this aspect of the matter. Both the Courts have held that the plaintiff had made out that he had sustained damages as stated above. In paragraph 3 of the plaint, the plaintiff has admitted that under the agreement Exhibit A-2 he must be put in possession for a period of 15 days prior to Deepavali, so that, at the latest, the breach committed by the defendants had occurred on 6th November, 1953. It was contended in the Courts below that Article 115 of the Limitation Act would not apply to the facts of the instant case and that the case would be governed either by section 23 or section 24. I am unable to see how section 23 or section 24 has any application to the case. Learned Counsel for the petitioner drew my attention to some decisions dealing with a claim for damages between the vendor and vendee, in which it had been held that a cause of action for a suit for damages would commence to run not on the date of the contract or on the breach as such, but only when the vendor or the vendee, as the case may be, had sustained damages as a result of the claim put forward by a third party with a paramount claim. Learned Counsel relied on some of the observations contained in those decisions. I am of the opinion that those decisions are not relevant to the instant case and that the observations contained therein should not be divorced from their context and understood as authority for the position that in every case of a breach of contract, limitation would commence to run not on the date of the breach but only from the date when the party aggrieved was in a position to fix or quantify his damages. Entirely different considerations would apply to a claim for indemnity. This is a simple case of a breach of contract, the breach consisting in the plaintiff not being allowed to enjoy his promised right of a licence for a period of 15 days. Breach is complete when the time for putting the plaintiff in possession of the property had expired on 6th November, 1953, the date of Deepavali. This is a simple case of a breach of contract, the breach consisting in the plaintiff not being allowed to enjoy his promised right of a licence for a period of 15 days. Breach is complete when the time for putting the plaintiff in possession of the property had expired on 6th November, 1953, the date of Deepavali. The fact that the plaintiff could not file a suit that very day and that some time may have to lapse for him to determine the quantum of damages does not mean that limitation does not commence to run from the date of the breach. Learned Counsel for the respondents drew my attention to a Bench decision of this Court in Soundararajan &38; Co. v. Annamalai1, in which it was contended that where a suit is filed for damages sustained upon a breach and consequent upon a re-sale, time would commence to run not from the date of the breach but only after there-sale when the exact amount of damages could be ascertained by the plaintiff. This argument was not accepted and it was held that time would commence to run under Article 115 from the date of the breach. The matter was put thus by Anantanarayanan, J., delivering the judgment on behalf of the Bench: “ But we find, upon a scrutiny of the relevant dates, that this claim is definitely out of time. It ought to have been instituted within three years of the date of the breach of the contract, and it is no defence to this objection to urge that it was only the occasion of re-sale which enabled the defendant-firm to ascertain exactly the degree of damages, or the precise amount which would represent the injury suffered by them. The occasion for ascertainment will have to be distinguished from the date upon which the causes of action arose and from which limitation began to run.” The principle of the decision clearly applies to the instant case. The acceptance of the contention urged by learned Counsel for the appellant would be completely opposed to the scheme of Article 115 and sections 23 and 24 of the Limitation Act. The acceptance of the contention urged by learned Counsel for the appellant would be completely opposed to the scheme of Article 115 and sections 23 and 24 of the Limitation Act. In every case of a breach of contract for the sale of goods, the plaintiff who comes to Court has a duty to mitigate the damages and he may have to take certain steps with regard to the goods in question and it is only after such steps are taken by way of re-sale that the damages could be ascertained. That does not mean that the running of time is postponed till the damages are actually ascertained and after re-sale. In this case, there is no question of any continuing wrong within the meaning of section 23, nor is it a case in which a cause of action has not accrued to the plaintiff on the date of the breach, within the meaning of section 24. The Second Appeal is dismissed, but in the circumstances there will be no order as to costs here. P. R. N. ------------- Appeal dismissed Leave refused.