AIR 1962 SUPREME COURT 366 ::1961 JabLJ 1054 ::1962 (1) SCJ 462 ::1962 (1) SCR 653 ::1963 SCD 332

Supreme Court Of India

(From Madhya Bharat : AIR 1957 Madh B 53)

Hon'ble Judge(s): P. B. Gajendragadkar, K. N. Wanchoo , JJ

Contract Act (9 of 1872) , S.73— Quantum of damages - Determination - Principles to be applied - Contract for sale of goods to be made through railway receipt for Calcutta F. O. R. Kanpur - Breach - Rate of goods in Kanpur and not in Calcutta in or about date of breach held determine quantum of damages. AIR 1957 Madh Bharat 53, Reversed. The first principle on which damages in cases of breach of contract are calculated is that, as far as possible, he who has proved a breach of a bargain to supply what he contracted to get is to be placed, as far as money can do it; in as good a situation as if the contract had been performed; but this @page-SC367 principle is qualified by a second, which imposes on a plaintiff the duty of taking all reasonable steps to mitigate the loss consequent on the breach, and debars him from claiming any part of the damages which is due to his neglect to take such steps. These two principles also follow from the law as laid down in S. 73 read with the explanation thereof (1912) AC 673, Rel. on.(Para 9) A contract had been entered into between A and B for sale of certain canvas at Re. 1 per yard. The delivery was to be through railway receipt for Calcutta F.O.R. Kanpur. The railway receipt was to be delivered on 5-8-1947. This was however not done. Therefore B ....