M. LACHIA SETTY & SONS LTD. ETC. ETC. v. THE COFFEE BOARD, BANGALORE (2)

Citation: [1981] 1 S.C.R. 884

Court: Supreme Court of India

Bench: V.D. TULZAPURKAR, R.S. PATHAK

Case summary

(a) The well accepted position in law on the question of mitigation of loss is that it does not give any right to the party in breach of the contract but is a ·concept to be borne in mind by the Court wbile awarding damages....

Judgment text

88~1 --- •, M. LACHIA SETTY & SONS LTD. ETC. ETC. V'. THE COFFEE BOARD, BANGALORE October 9, 1980 [V: D. TULZAPURKAR AND R. S. PATHAK, JJ) Auction sales-Auctioneer, if competent to impose his ·own terms for hold· ing a11ctions-Mitigat1'on of loss in resale of goods 'not taken delivery of-Right~ of defaulting and non-defaulting parties. One of the three methods followed by the respondent, IThe Coffee Board), for releasing raw coffee seeds to the trade for internal consumption was by "pool auctions" in wbich only dealers registered with the Board were permitted to participate. · The pool auction was conducted by a Sale Conducting Officer (who was Chief Marketing Officer of the Board). Condition 8 of the Condi: tions of Sale provides, "telegraphic bids or telegraphic instructions regarding bidding will not be considered. " Condition 6 provides, "the seller does not bind himself to accept the high'est or any bid. He is not bound to assigll any reasons for his decision and his d sed.