Chapter 5.19 - Laws Relating to non-Delivery after Sale

Vikrīyāsampradāna is delineated as the sixteenth title of law in the Yājñavalkyasmṛti. The nomenclature itself shows the nature of the title of law that after selling an article if it is not delivered to the purchaser then a title of law arises which is called vikrīyāsampradāna. The Nāradasmṛti gives a similar definition of it.^[1] Though Yājñavalkya has not defined it differently, all the characteristics amounting to a definition are found in the first rule of this section. The laws falling under this title of law mainly govern the rights and liabilities of the seller and purchaser. According to Yājñavalkya, a person having received the price of a thing sold, is bound to deliver it to the buyer. In case he does not make it over to the purchaser, then he shall be under obligation to deliver the thing along with profit or interest. When such a purchaser belongs to a foreign country, the seller must be made to pay the profit that might have been earned by the buyer taking the merchandise and selling it in that country.^[2]

The Mitākṣarā observes that these rules are applicable in the absence of a rescission.^[3] Any loss, deterioration or damage occurred to the articles sold, because of the act of god or of the king, the seller should be compelled to make good or compensate the loss when he has not delivered it even on demand made by the purchaser.^[4] Generally, it is the obligation of the seller not to resale the sold thing and to deliver the article of the same quality as has been agreed upon or sold. Yājñavalkya directs that if a man resells a thing, which has been sold to another already, or sells a defective thing either concealing the fact or misrepresenting it as sound one, then he is to be punished by inflicting a fine double the price of the thing.^[5] However, under certain circumstances, the right of purchaser to resale is accepted by law. When the purchaser having purchased a thing does not take delivery of it, in such case, the seller is entitled to resell the same thing once again to another person and also can recover the loss sustained from the first purchaser due to his negligence or fault. ^[6] Therefore, it may be understood that reselling is illegal when purchaser who purchased first is ready and willing to take delivery. A trader is not allowed to rescind a sale of commodities unless he has been ignorant of the increased or decreased rate of those commodities and if anyone rescinds without complying with this rule then he has to pay a fine of one-sixth of the value of the commodity.^[7]

The laws incorporated by Yājñavalkya relating to non-delivery after sale holds good even under modern day legal system. Section 44 of the Sale of Goods Act provides similar liability of buyer for neglecting or refusing delivery of goods as that of the provision given in the Yājñavalkyasmṛti. When the buyer does not take delivery of goods within reasonable time after seller is willing and request for that purpose, then the buyer is liable to the seller for any loss occasioned by his neglect or refusal to take delivery.^[8] The liability imposed upon the seller by Yājñavalkya when he fails to deliver goods, sold to the purchaser, corresponds to Section 57 of the Sale of Goods Act. According to this section, when seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer can sue the seller for damages of non-delivery after sale.^[9]