AIR 1952 RAJASTHAN 187

Rajasthan High Court

Hon'ble Judge(s): Bapna , J

Transfer of Property Act (4 of 1882) , S.3, S.6, S.130— Assignment of rights under contract - Contract to deliver goods - Damages specified in case of breach - Breach - Suit by assignee to recover earnest money and damages - Maintainability. Contract Act (9 of 1872) , S.74— A agreed to deliver to B a particular number of bricks by a particular date at Rs. 14 per thousand and in default A was to pay Rs. 6 per thousand bricks not delivered by way of damages. On default by A to deliver the bricks B transferred his rights under the contract to C who sued for recovery of the earnest money paid to A and for damages for non-delivery of bricks at the agreed rate of Rs. 6. Held (1) that so far as the recovery of earnest money was concerned C was entitled to a decree. The right to recover money paid under a contract of sale on failure of the seller to hand over possession of the property is not a mere right to sue. It is a claim for an ascertained amount and can be transferred as an actionable claim.(Para 2) (2) that as regards the claim for damages, C was not entitled to any decree. Although the amount of damages may be mentioned in the contract the party complaining of its breach is only entitled to reasonable compensation under S. 74, Contract Act. The claim for damages for breach of the contract is, ther....