The Hon’ble High Court in the case titled M/S. Kcl Ltd. Vs. Thomson Press India Ltd. RFA 1007/2017 and 1014/2017 decided on 06.12.2017, upheld the decision of the Trial Court and held that the appellant/defendant is bound by virtue of Section 42 of the Sales of Goods Act, 1930. This is a Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC) filed by the defendant in the suit impugning the judgment of the Trial Court dated 31.7.2017; by which the trial court has decreed the suit for recovery filed by the respondent/plaintiff for an amount of Rs.19,81,927/- along with interest at 12% per annum simple.
The main challenge before the Hon’ble High Court of Delhi is whether the plaintiff is entitled to a decree for a sum of Rs.19,81,927/- against the defendant.
The appellant/defendant pleaded that on account of the defective printing the appellant/defendant suffered huge loss and therefore the appellant/defendant was entitled to a sum of Rs.18,14,677/- and for which amount a counter-claim was filed.
The Hon’ble High Court upheld the decision of the Trial Court and held that the appellant/defendant is bound by virtue of Section 42 of the Sales of Goods Act, 1930. As per this provision, once no objection is raised within a reasonable period of time with respect to alleged defects in the goods, then, the buyer cannot thereafter object to any defect in the goods. Section 42 mandates that buyer will deem to have accepted the goods when he either actually intimates to the seller regarding acceptance of goods or where he does any act in relation to those goods which is in consistent to the ownership of seller or when after lapse of a reasonable time buyers retains the goods without intimation of rejection of the same. The Hon’ble Court agreed with the conclusion of the Ld. Trial Court which held that in the present case also, when there were already expressed conditions of sale for inspection of the goods, still there being no communication from defendant for period of about two months since the lastly accepting of goods of printed inlay cards and folders to the effect that there is any defect in the printing work, in view of the conditions of sale and the provisions of section 42 as discussed above, defendant company will deem to have accepted the material without there being any defects.