GULJARILAL KANORIA & CO. v. K. C. SETHIA.

(1942) 72 Ll L Rep 142

KING'S BENCH DIVISION.

Before Mr. Justice Atkinson.

Sale of goods (c.i.f.)- Failure to ship- Measure of damages- Sale of jute to be shipped during July and August, 1939- London Jute Association Contract - Extension of time for shipment to Dec. 31- Notification given by sellers by cable of Dec. 28 that goods would not be shipped- Declaration of default - Clause 12 (a): "In the event of default of tender or delivery, seller shall pay to buyer as and for liquidated damages 10s. per ton plus the excess, if any, of the market value over the contract price. The market value is that of the jute contracted for on the day following the date of default; the date of default is the date in London, and if the buyer be resident elsewhere declaration of default must be by telegram. Without a declaration of default, default is eventually made by lapse of time on the 21st day after expiry of the extended period. (b): Should default be made within the extended period for shipment the date of default shall be deemed a 'bill of lading date' as regards payment of the fines specified in the clause relating to 'extension of time for shipment.' If default be declared or made later than the last day of such period, the other party may elect as the date of default either the actual date on which default is notified or the last day allowed for shipment, including the extended period" - Construction - "Default of tender or delivery"- "Date of default" - Arbitration- Award of Appeal Committee of London Jute Association that sellers' cable of Dec. 28, 1939, was a declaration of default; that default took place immediately after the expiration of Dec. 31; and that the date of default (at which the market value would be calculated) was Jan. 1, 1940- Case stated.