Citation : 2025 Latest Caselaw 3765 Tel
Judgement Date : 10 June, 2025
THE HON'BLE SMT. JUSTICE TIRUMALA DEVI EADA
CITY CIVIL COURT APPEAL No.248 OF 2019
JUDGMENT:
This is an appeal filed by the appellant, being aggrieved by
the judgment and decree, dated 20.02.2019 passed in O.S.No.833
of 2013 by the learned IX Additional Chief Judge, City Civil Court,
Hyderabad (for short "the trial Court").
2. The appellant herein is the plaintiff and the respondents are
the defendants before the trial Court. The parties herein are
referred to as they were arrayed in the suit before the trial Court
for the sake of convenience and clarity.
3. The case of the plaintiff before the trial Court was that the
plaintiff is engaged in the business of sales, supply and service of
all kinds of pre-owned imported medical equipment to the
Hospitals in India and that it got a chance to import sophisticated
pre-owned 1000 number of Horizon NXT Infusion Pumps (needle
less IV system) manufactured by M/s.B.Braun, Melsungen Ag., (a
German Medical and Pharmaceutical device company) from the
supplier by name M/s.DOTMed.com Inc.USA. That the plaintiff
was not aware whether the compatible IV sets were available in
India or not and that the sophisticated pumps were not sold in
India and therefore, the plaintiff approached M/s.DOTMed.com ETD,J CCCA No.248_2019
expressing its interest that it would be taking up the deal if the
compatible IV sets are available in India. It is its further case
that in the Website of defendant No.2 the name of M/s.B.Bruan
Medical (India) Private Limited is reflected as a manufacturer
doing its business in India at Mumbai and that it is engaged in
manufacturing various range and types of health care products
such as infusion pumps, IV sets, Intensive care, cardiology,
extracorporeal blood treatment units etc., and are also the
stockiest Distributors and suppliers of multi brand health
products etc., and also they are the service providers. Having
gone through the website the plaintiff could find that one
Mr.Jagdish Chandra Modi, is the person entrusted with the
responsibility of Indian Operations and that he is taking care of
the business operations in India, thus, the plaintiff negotiated
with the concerned person and enquired whether the said
company can supply compatible IV sets on regular basis for
importing the counterpart equipment viz., Braun Horizon NXT
Infusion Pumps by the plaintiff and has addressed a mail to that
effect on 15.03.2012. It is its further case that in reply to the said
email, defendant No.1 has directed its Regional Sales Manager
Mr.Mahender Reddy at Hyderabad to attend to the plaintiff's
requirement and the said person has confirmed the availability of
IV sets named "Intrafix ECO" for the Horizon NXT Pumps and ETD,J CCCA No.248_2019
quoted a price of Rs.17/- per set along with VAT. Thus, in view of
the confirmation, the plaintiff has accepted for the same and gave
his confirmation to the supplier M/s.DOTMed.com and went
ahead and got imported 500 units of pre-owned Braun Horizon
NXT pumps out of proposed 1000 units in the first phase. The
plaintiff has paid for all the necessary charges. After receiving the
first consignment containing the 500 units of pre-owned Braun
Horizon NXT pumps, he contacted the defendant No.1 to arrange
the supply of the compatible IV sets and that the defendant No.1
has supplied one packet of IV sets containing 50 numbers and the
plaintiff paid an amount of Rs.1,050/- towards its charges but the
plaintiff was shocked to know that IV sets were not compatible
with the imported Horizon NXT Infusion Pumps. Immediately, the
plaintiff has intimated about the said fact to the defendant No.1
and requested for arrangement of suitable IV sets. The Regional
Sales Manager of D1 offered to depute their Technical expert
Mr.Ravikanth to check the equipment and find out whether the IV
set is compatible and after due inspection the said person has
informed that they are not compatible to the Horizon NXT Pumps
and the same was informed to defendant No.1. It is the case of
the plaintiff that he suffered a huge loss due to the above contract
because the entire Horizon NXT pumps which were bought by him
were rendered useless without the compatible IV sets. That the ETD,J CCCA No.248_2019
defendant No.1 was careless and negligent and has acted in an
unprofessional manner, thereby making the plaintiff to suffer a
huge loss of Rs.9 Lakhs which includes warehousing charges and
interest thereon. That on account of failure of defendant No.1 and
his breach of agreement, the imported equipment is lying idle and
useless, as a result, the plaintiff suffered huge financial loss and
he also lost his business contacts. When he informed the same to
defendant No.1 and requested to find a solution, defendant No.1
has expressed apologies and had informed that the item is not a
routine item and hence, no confirmation would be given without
checking in all aspects and has expressed his inability with regard
to the non-availability of compatible IV sets and further informed
that there was no written confirmation about supply of compatible
IV sets. Thus, the plaintiff has issued a legal notice dated
19.12.2012 calling upon defendant No.1 to pay Rs.12 lakhs to the
plaintiff as compensation for the failure of non-supply of
compatible IV sets, to which the defendants have issued a reply
and again the plaintiff has issued a rejoinder on 20.02.2013. It is
the further case of the plaintiff that defendant No.1 is a subsidiary
company of defendant No.2 company. Thus, defendant No.2 is
also equally responsible for the acts and the breach of contract of
defendant No.1 and therefore, both are liable to pay his claim.
Thus, he claimed an amount of Rs.13,75,000/- including interest.
ETD,J CCCA No.248_2019
4. The defendants have filed a written statement denying the
averments and have submitted that the plaintiff has raised a false
claim against them. The mail dated 15.03.2012 is admitted and
that in response to the said mail, they have addressed a mail on
16.03.2012 categorically stating that they can supply a different
brand name called "Intrafix Eco" IV sets and not Horizon NXT
Infusion Pumps as asked by the plaintiff company. But the
plaintiff without making any further enquiry as to whether
"Intrafix Eco" would go along with used Braun Horizon infusion
Pumps has blindly proceeded and placed an order with the
distributor in Hyderabad. Subsequent thereto, plaintiff has sent a
mail to Regional Sales Manager of the 1st defendant that they were
unable to connect "Intrafix Eco" IV sets to Horizon NXT sets and
on the very same day, the defendant No.1 responded stating that
the said Horizon NXT is exclusive for markets in USA and that
they are not available in India, as such, the compatible IV sets for
Horizon NXT are not locally available in India. In its response to
the plaintiff mail dated 01.11.2012, they have expressly informed
the plaintiff that they have never assured to provide IV sets
compatible with Horizon NXT and that the plaintiff cannot dispute
this. The defendants have further contended that when the
plaintiff has requested for the compatible IV sets through its mail
dated 02.11.2012, they have responded by saying that the said ETD,J CCCA No.248_2019
compatible sets would cost upto 5 USD per set and the plaintiff
responded seeking a volume base discount on the rates of the IV
sets owing to the large number that the plaintiff offered to
purchase and to their surprise on 03.11.012 the plaintiff has sent
a mail alleging that the 1st defendant indulged in breach of trust
and unfair trade practice and sought to raise a claim that they
had suffered a loss due to the 1st defendant and asked for an
amicable settlement of the issue. Thus, the defendants case is
that they have always been clear that they have agreed to provide
only "intrafix Eco" IV sets and that they cannot provide with the
compatible IV sets with Horizon NXT system and that to the said
mail expressing the high cost of IV sets compatible with Horizon
NXT system, there was no response from the plaintiff. The
plaintiff was careless and failed to verify before placing the order
as to whether he is placing an order for the right product or not
but instead he has simply gone ahead and has ordered for Intrafix
Eco and now because of its failure to use the same with the
Horizon NXT sets, is raising a false claim against the defendants.
5. The 2nd defendant is no way concerned with the alleged
transaction between the plaintiff and the 1st defendant and that
the 2nd defendant is falsely implicated in the present suit. The
defendants have therefore contended that the plaintiff has filed ETD,J CCCA No.248_2019
frivolous claim against them and wants to get benefit out of the
loss suffered due to his own negligence. Therefore, prayed to
dismiss the suit.
6. Based on the above pleadings, the trial Court has framed
the following issues for trial:
"1. Whether the plaintiff is entitled for compensation for monetary loss amounting to Rs.10,75,000/- as prayed for?
2. Whether the plaintiff is entitled for damages amounting to Rs.3,00,000/- as prayed for?
3. Whether there is cause of action to file the suit?
4. Whether the suit is properly valued?
5. To what relief?"
7. At the time of trial, PW1 was examined on behalf of the
plaintiff and Exs.A1 to A48 were marked. On behalf of the
defendants, DW1 was examined and Exs.B1 to B6 were marked.
8. Based on the evidence on record, the trial Court has
dismissed the suit. Aggrieved by the said judgment and decree,
the present appeal is filed by the unsuccessful plaintiff.
9. Heard the submissions of N.Srinivasa Rao, learned counsel
for the appellant and Sri A.P.Suresh, learned counsel for the
respondents.
ETD,J CCCA No.248_2019
10. The learned appellant counsel submitted that the judgment
passed by the trial Court is totally devoid of merits and contrary
to the evidence placed on record. That the trial Court has failed to
appreciate the documentary evidence adduced by the plaintiff
under Exs.A1 to A48 and that the said documents establish their
case against the defendants and that the trial Court ought to have
decreed their suit and that their claim was admitted by DW1
during his cross examination and the same is ignored by trial
Court. He further argued that the unfair trade practices have
been adopted by defendant No.1 and that they have committed a
breach of contract basing on false and fictitious promises and
thus, they are liable to pay the amount claimed by the plaintiff.
He further argued that the plaintiff has suffered a huge loss just
because of the careless attitude of the defendant and that it has
lost its business contacts and that the plaintiff could prove the
negligence and breach of contract committed by defendant No.1
but the trial Court failed to appreciate the same. He argued that
the trial Court failed to consider the admission made by defendant
No.1 that they have deputed one of their engineer to check the
compatibility of IV sets to Horizon NXT to the place of plaintiff and
that if really the defendant No.1 was not under a contractual
obligation, there was no reason for them to send the Engineer to
check the compatibility. Thus, if the trial Court has appreciated ETD,J CCCA No.248_2019
the evidence in a proper perspective, their suit ought to have been
decreed, he therefore prayed this Court to set aside the judgment
and decree passed by the trial Court and allow the present appeal.
11. The learned respondents counsel, on the other hand, has
submitted that the case of the plaintiff is based on a fictitious
claim and that the plaintiff cannot take advantage of his own
wrong and make the defendant responsible to pay for the same.
He further argued that there is no default committed by the
defendants and that the plaintiff himself has raised an indent for
supply of intrafix Eco IV sets inspite of the defendant expressing
that they cannot supply the compatible Iv sets for Horizon NXT
and that now the plaintiff cannot fix up the defendant for the non
compatibility of the IV sets. He further submitted that the trial
Court has appreciated the entire evidence on record and has
arrived at a proper decision of dismissing the suit and has
therefore, prayed this Court to uphold the same.
12. Based on the above rival submissions, this Court frames the
following points for consideration:
1) Whether there was any valid contract between the plaintiff and the defendant? If so, whether there was any breach of contract committed by defendant No.1?
ETD,J CCCA No.248_2019
2) Whether the plaintiff is entitled for claiming compensation and damages claimed in the suit?
3) Whether the judgment and decree of the trial court is sustainable in law and under the facts?
4) To what relief?
13. POINT NOs.1 AND 2:
a) The case of the plaintiff is that the defendants have
committed breach of contract for which the plaintiff is claiming
compensation as well as damages. Therefore, in the first instance
it has to be examined whether there was any valid contract
between the two parties.
b) A perusal of Ex.A3 reveals that the plaintiff has addressed a
mail to one Mr.Modi on 15.03.2012 saying that one of its principal
have offered 1000 numbers of Braun Horizon NXT Infusion pumps
and that the plaintiff wanted to know whether defendant No.1 can
supply IV sets on a regular basis if they buy the above described
equipment and he also wanted to know the cost. To this, the
defendants have replied on 16.03.2012 stating that they can
supply a different brand by name Intrafix Eco IV sets @ Rs.17/-
per set. Thus, the plaintiff has enquired as to the availability of
the compatible IV sets in the said mail but it cannot be held to be
a concluded contract under Ex.A3.
ETD,J CCCA No.248_2019
c) The plaintiff has filed documents from Exs.A1 to A48 but
none of the documents can be taken to be a valid contract
between the plaintiff and the defendant. On the other hand,
Ex.A8 shows that the defendant has responded to the mail of the
plaintiff saying that they do not have the compatible IV sets but
they have only Intrafix Eco and it has expressed that it has only
Intrafix Eco IV sets @ Rs.17/- per set and that it requested for
confirmation if any. Nowhere it is mentioned that they are
compatible to the NXT IV sets. To say that there is a breach of
contract by the defendants, at first instance there should be a
valid contract between them. The plaintiff failed to place any
piece of evidence showing that there exists a contract between
himself and the defendant. If at all he has received a confirmation
mail saying that the defendant has the compatible IV sets suitable
for Horizon NXT, then the plaintiff could have placed the same on
record but none of the mails show this confirmation.
d) On the other hand, the plaintiff has written to the defendant
saying that on a confirmation about the availability of compatible
IV sets, he has imported the said Horizon NXT sets and thus, has
requested the defendant to ensure the availability of the
compatible IV sets. In response to the said mail, immediately the
defendant has responded saying that the said model Horizon NXT ETD,J CCCA No.248_2019
is sold only in USA and thus, the compatible IV sets are not
available in the Indian market. These mails do not in any way
confirm the availability of the compatible IV sets in India and if at
all the defendant has confirmed in any way that they can supply
the compatible IV sets , the plaintiff should have placed the same
on record but no such piece of evidence is placed by the plaintiff.
In the absence of which, it cannot be held that there was a
concluded contract between the plaintiff and the defendant and as
a result of which, the defendant cannot be held to have committed
any breach of contract.
e) Further, PW1 has admitted that under Ex.A1 in the e-mail
sent by him he has not mentioned the purpose for procurement of
medical equipment mentioned therein and that he also admitted
that in reply to Ex.A1, defendant No.1 has given reply stating that
they have only the IV sets namely Intrafix Eco for the Horizon NXT
Pumps as against the request for compatible IV sets as in Ex.A1.
It is the evidence of PW1 that Ex.A8 is the confirmation given by
defendant No.1 to go ahead with proposed import of product
mentioned in Ex.A1 but a perusal of Ex.A8 reveals that defendant
No.1 has clearly expressed that they have only Intrafix Eco IV sets
@ Rs.17/- per set, but they have no where mentioned in the said
mail that the said Intrafix Eco are compatible to Horizon NXT sets ETD,J CCCA No.248_2019
and they further have asked the plaintiff whether he is interested
to confirm and that they are awaiting confirmation. Thus, Ex.A8
cannot be taken as a confirmation made by defendant No.1 and
PW1 has further admitted that there was no confirmation with
regard to availability of product mentioned in Ex.A1 and also that
defendant Nos.1 and 2 have not given any confirmation to proceed
with the import of 500 units of pre-owned braun horizon NXT
pumps from M/s dot.med.com from overseas. To a specific
question posed in this regard, PW1 has answered negatively
saying that the defendants have not given any confirmation with
regard to the availability of the product mentioned in Ex.A1 and
also that they have not asked the plaintiff to proceed with the
import of the said equipment from abroad. Thus, such an
admission by PW1 and also a perusal of the mails addressed by
the plaintiff to the defendants and the mails received from the
defendant in this regard do not establish any concluded contract
between the plaintiff and the defendants. Thus, though the
plaintiff is under an impression that Ex.A8 itself is a confirmation,
a perusal of Ex.A8 does not reveal the said fact as discussed
supra. Therefore, it is held that there is no valid contract between
the plaintiff and the defendants and as a result of which there
cannot be any breach of contract. When there is no valid
contract, it cannot be held that the defendants committed any ETD,J CCCA No.248_2019
breach of contracts. Therefore, it is held that the defendants are
not liable to pay any amounts as claimed by the plaintiff.
f) It is the contention of the plaintiff that one Mr.Mahender
Reddy, who is the incharge of the defendants company at
Hyderabad has informed him over phone that the infusion sets
are compatible with the Horizon pumps and that the said
Mahender Reddy would depute one technical expert to help in
fixing the IV sets to the Horizon pumps and also that one person
by name Ravikanth was sent in the month of October, 2012 and
that on their examination, they found that the said sets are not
compatible to the Horizon NXT pumps. It is his contention that if
at all the defendants were not aware of the incompatibility they
could not have deputed a person to examine the compatibility.
But on the other hand, it goes against the plaintiff that without
any verification and confirmation as to whether the said IV sets
would be compatible to the Horizon NXT infusion pumps, the
plaintiff has placed an indent for the same and has procured the
same at his own risk.
g) The mails addressed by the plaintiff do not reveal that the
plaintiff had ever enquired with regard to the compatibility of the
said IV set Intrafix Eco to that of Horizon NXT Infusion pumps,
though the defendants have clarified that they can only supply ETD,J CCCA No.248_2019
only Infrafix Eco, the plaintiff did not bother to enquire its
compatibility to horizon NXT.
h) It is elicited through the evidence of DW1 that as per the
request of the plaintiff company they had sent their engineer to
check the machine and that they have supplied the IV sets as per
the requirement placed by the plaintiff company. DW1 has
further admitted that defendant No.1 company is not marketing in
India and that he has not given any authorization to import and
sell the said machine in India and that their company has no
license to market the said machines in India but they sell similar
infusion pumps and it is further admitted by DW1 that they never
informed that they are not marketing the said products in India
i.e. Horizon NXT IV pumps, before they were being imported by
the plaintiff company and it is elicited through DW1 that the
plaintiff never asked their company about the import supply of the
machines. Though the plaintiff tried to elicit from DW1 that
defendant No.1 is aware about their import of Horizon NXT
infusion pumps, he was not successful in eliciting the said fact
from DW1. On the other hand, DW1 has deposed stating that
they do not sell the said Horizon NXT Pumps in India but they sell
similar pumps.
ETD,J CCCA No.248_2019
i) A perusal of Ex.B6 reveals that it is a mail addressed by the
plaintiff to the defendants on 08.11.2012 saying that to his mail
dated 15.03.2012 informing his intention to import 1000 numbers
of used Horizon NXT Infusion Pumps and his enquiry with regard
to the availability of compatible IV sets he is referred by Mr.Mody
to Mr.Mahender Reddy, the Regional Manager, at Hyderabad and
that he called Mr.Reddy on 16.03.2012 to which Mr.Reddy has
confirmed the availability of compatible IV sets to the Horizon NXT
Pumps by name Intrafix eco and quoted a price of Rs.17/- per
each set. A perusal of the said mail dated 16.03.2012 which is
filed under Ex.A9, reveals that the defendant has never stated
that intrafix eco is compatible to Horizon NXT infusion Pumps.
Thus, it is the apprehension and assumption of the plaintiff that
the said IV set is compatible to Horizon NXT Infusion Pumps.
Nowhere in the mail dated 16.03.2012, it is mentioned that the
said IV set is compatible to NXT infusion pumps, which falsifies
the case of the plaintiff.
j) The learned appellant counsel has relied upon a decision in
Motilal Padmapat Sugar Mills Co.Pvt.Ltd., v. State of U.P. 1,
wherein the Apex Court has discussed about the Doctrine of
Estoppel and held that the true principle of promissory estoppels
AIR 1979 SC 621 ETD,J CCCA No.248_2019
therefore, seems to be that where one party has by his words or
conduct made the other a clear and unequivocal promise which
intended to create a legal relations or affect a legal relationship to
arise, knowing or intending that it would be acted upon by the
other party and if it is in fact so acted upon by the other party,
then the promise would be binding on the party making it and he
would not be entitled to go back upon it. If it would be inequitable
to allow him to do so having regard to the dealings which have
taken place between the parties and this would be so irrespective
of whether there is any pre-existing relationship between the
parties or not. Thus, the counsel argued that though there is no
express contract between the plaintiff and the defendants, the
communication made between them and the way they have acted
upon by supplying the equipment, there seems to be a pre-
existing relationship between the parties and thus, it has to be
taken as concluded contract and that the defendant cannot go
back on the terms of contract. But a perusal of the said emails as
discussed supra would reveal that the defendant was clear
enough in stating that he has only Introfix Eco IV Set and that
nowhere he has committed that it is suitable to that Horizon NXT
Injusion Pumps, therefore, it cannot be inferred that there was a
pre-existing contract in this case.
ETD,J CCCA No.248_2019
k) Further, the learned counsel relied upon a decision in
Coffee Board Karnataka v. Commercial Taxes, Karnataka 2,
wherein it was held that offer and acceptance need not always be
in an elementary form, nor does the law of contract or sale of
goods required that the consent to a contract must be expressed.
Offer and acceptance can be spelt out from the conduct of the
parties which cover not only their acts but omissions as well. He
further relied upon a decision in Bharat Petroleum Corp Ltd. V.
Great Eastern Shipping Co.Ltd., 3 wherein it was held that the
general rule is that an offer is not accepted by mere silence on the
part of the offerree, yet it does not mean that an acceptance
always has to be given so in words. Under certain circumstances,
offerree's silence, coupled with his conduct, which takes the form
of a positive act, may constitute the acceptance - an agreement
sub silentio. Therefore, the terms of the contract between the
parties can be proved not only by their words but also by their
conduct. Through, these case laws the counsel stressed upon the
point that from the conduct of the parties, offer and acceptance
can be made out. It is once again reiterated in this regard that
the conduct of the party in the present case do not lead to an
inference of accepting an offer. The plaintiff has requested for
(1988) 3 SCC 262
AIR 2008 SCC 357 ETD,J CCCA No.248_2019
supply of compatible IV set but the defendant has in clear terms
stated that it could supply only Introfix Eco IV Sets and nowhere
it has specified that it is suitable to Horizon NXT Infusion Pumps
and is waiting for the acceptance of the plaintiff. However, there
is no further communication in this regard by the plaintiff, thus,
it cannot be said to have been an acceptance of the said offer.
l) The only issue that has to be looked into is whether there
was a concluded contract between the plaintiff and the defendants
with regard to the supply of IV sets compatible to Horizon NXT.
There is no evidence on record to show that the defendants have
agreed to supply Horizon NXT compatible IV sets to the plaintiff.
m) In view of the discussion held supra, it is held that there
was no concluded contract between the plaintiff and the
defendant and thus, question of its breach does not arise at all.
Therefore, the plaintiff is not entitled to claim any compensation
or damages. Point Nos.1 and 2 are answered accordingly.
14. POINT NO.3:
In view of the reasoned findings arrived at point Nos.1 and
2, it is held that the judgment and decree passed by the trial
Court are found to be well reasoned and hence, they are held to ETD,J CCCA No.248_2019
be sustainable in law and under the facts and circumstances of
the case.
15. POINT NO.4:
In the result, the appeal is dismissed upholding the
judgment and decree, dated 20.02.2019 passed in O.S.No.833 of
2013 by the learned IX Additional Chief Judge, City Civil Court,
Hyderabad. No costs.
Miscellaneous Applications, if any, pending in this appeal
shall stand closed.
_________________________________ JUSTICE TIRUMALA DEVI EADA Date: 10.06.2025 ns
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