Purchase of machinery - damages received for breach of contract, on capital account - price of machinery stands reduced and so does depreciation - A 50 year old dispute settled : HC
Deepak Jain, Advocate [Completing LL.M. from NUJS, Kolkata] wrote to us,
The article has brought out the dilemmas in the Indian Legal System specially the Courts. Justice delayed is justice denied for sure - which has taken place in this case. Normally the cases are decided in 5-20 years, but this is too much! A very important observation made is appreciated that the cases pending in appeals etc. beyond a period of 20 years should lapse automatically.
Further, it may be noted that a decision on a legal ground may have serious impact on the Statute and precedential law. The law may have been changed many a times in the mean time - which makes the effect of decision given by HC of little or no importance.
Another important point to be noted that, legislature in its own wisdom, if the case is not in favour of Revenue and all these 50 years there was no amendment or change in the legal provisions, we not have been surprised to witness a retrospective revision w.e.f. 1-4-1957 or so. On the substantive part of the judgment it may be noted that primarily the distinction has been drawn with respect to breach of contract and breach for warranty which again is very crucial. Had the out of court settlement not taken place this could be more interesting.