• Whether claims of my client are sustainable

Whether claims of my client are sustainable ...if yes kindly provide case laws:
Claims are
1:As our major part of our claim constitute of demurrage/ compensation for warehousing and other charges on storage of excess goods as supplied by your company.  So on this issue, I would like to state that as per condition no.1 of Terms and Condition of sale, the order placed by my client will only be treated as offer for purchase and your company, at its discretion, will make supply only against such. So, on legal interpretation of such condition it is clear that any supply made by your company without order of my client will not come under purview of sale transaction and no Terms and Condition of Sale will apply on it.
2:.	As per discussion with your legal representative , It came to our knowledge that the demand as alleged by you toward my client includes Interest amounting.
I would like to draw your attention toward “Condition No 5 of your Sales Term and Condition”, subject to issue No 1 of this letter.
As per this condition “Company will charge interest from the due date at the rate communicated to the customer from time to time”.
As , till date neither Company not any of its representative  communicated about rate of interest as company keen to charge from my client over the overdue amount . Any such claim of company will be illegal and unethical.
3:.	As we had already mentioned before that you had supplied goods much above the ordered quantity, which not only cause huge financial burden over my client in form of Warehousing and other expenses but also give mental tension and agony to my client.
So,we demanded  your company to pay compensation /demurrage charges to my client at tune of “Rs 20 per case per day of warehousing”.
Asked 10 months ago in Business Law from Aligarh, Uttar Pradesh
1) if goods have been supplied in excess of supplied quantity the company had option to return the goods 


2) once having accepted the goods purchaser cannot claim warehousing and other expenses 

3) if rate of interest has not been communicated and purchaser has not agreed to pay interest as claimed seller cannot claim interest . 

4) interest can be claimed for outstanding dues after issue of legal notice wherein it is mentioned that in case payment not received within  ___ days from date of receipt of legal notice interest would be charged at X rate 
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
5.0 on 5.0
1) yes if seller admits having sent excess goods and requested purchaser to unload goods and store in warehouse you can claim warehouse charges

2) ideally in your correspondence it should have been mentioned that warehouse charges would be debited to seller account 
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
5.0 on 5.0
your client is deemed to be pawnee and according to section 173/175/176 indian contract act he can sell that goods without permission if his expense extend upto 2/3 part of goods. 

Till then he can file suit for compensation. 
Shivendra Pratap Singh
Advocate, Lucknow
2771 Answers
41 Consultations
4.9 on 5.0
Basically this is relating to the dumping policy adopted by most the companies on the dealer and putting pressure on them to sell them or face termination of the dealership/distributorship etc or cancellation of contract on some flimsy grounds. Most of the dealers suffer this humiliation in silence though they are not able cope up with the additional stock more than their capacity. A very few people like you revolt against the companies in such manner daring the companies to initiate even cancellation of contract or termination of dealership etc.
Now the question is whether the claim is sustainable?, In my opinion you have belled the cat, follow the cat till the end until you find some solution to this. Let the company come forward with its own defence, I dont think the company has any defence to this because the supply made is obviously against no indent or any pending order, therefore this dumping policy can be highlighted and the claim for demurrage can be made.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Sir, in this case my client (purchaser) on receiving the excess quantity made a mail to seller asking them why they are sending goods without our order and what we have to do regarding same .In reply to which we receive a mail from representatives of seller where they accepted that they send excess goods and request my client to get goods unloaded in the warehouse and they also mention that they will try to sell these goods through there channel.Even after that my client is regularly requesting them to get goods returned to company warehouse but we receive no response from other side.Did in such circumstances our claim for compensation sustain
The evidence in your client's possession, i.e., the reply mail by the company is a clear evidence against the company who flouted the rules and had actually dumped the goods with the client's warehouse much against his protest and objection.  Therefore in my opinion, your client becomes eligible to claim against the warehouse rent and demurrage. You may proceed and see how is the company going to defend itself especially in the light of its reply to take care of the selling of the goods through its channel.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18190 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2771 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
230 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0