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

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

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.

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.

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.