8 months ago

Bombay HC Rules Use of Goods as Deemed Acceptance

Bombay HC Rules Use of Goods as Deemed Acceptance
Bombay HC: Use Of Goods Amounts To ‘Deemed Acceptance’; Buyer Cannot Reject Later Citing Defects · freepressjournal.in

The Bombay High Court recently made an important decision about buying and selling goods.

They said that if a buyer starts using the goods they bought, it means they accept them, even if they later find some problems.

In this case, a company called Godrej bought some steel tubes from another company, Remi.

After using the tubes, Godrej said some were rusty and discolored and tried to return them.

But the court said that because Godrej had already used the tubes, they couldn't reject them later.

The court also said that Godrej can only ask for money to fix any problems, not return the tubes.

This decision is based on a law called the Sale of Goods Act, which says that using goods means you accept them.

Key facts

Parties Involved
Godrej and Boyce Manufacturing Company Limited and Remi Sales and Engineering Limited
Dispute Value
Over Rs 5 crore
Arbitral Award
Rs 4,25,44,680 with 10% interest
Goods in Dispute
8,339 stainless steel seamless tubes
Contract Date
August 2016
Supplies Made
2017
Legal Provision
Section 42 of the Sale of Goods Act, 1930
Court
Bombay High Court

Quotes

Justice Marne

Justice of the Bombay High Court

“a party cannot blow hot and cold at the same time”
freepressjournal.in

Sources