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PETITIONER: TROJAN & CO. LTD.
Vs.
RESPONDENT: RM. N. N. NAGAPPA CHETTIAR.
DATE OF JUDGMENT: 20/03/1953
BENCH: MAHAJAN, MEHR CHAND BENCH: MAHAJAN, MEHR CHAND DAS, SUDHI RANJAN
CITATION: 1953 AIR 235 1953 SCR 780 CITATOR INFO : R 1964 SC 136 (11) R 1966 SC 735 (8) R 1977 SC 890 (8) D 1980 SC 727 (11)
ACT: Contract-Damages-Sale of shares-Sale induced by fraud- Measure of damages-Difference between price paid and market price on date of sale-Fluctuations of market and sudden closure of Stock Exchange, effect of--Interest on damages- Practice-Conflict between pleadings and proof-Decree on alternative claim not set up in plaint-Legality.
HEADNOTE: Where a person is induced to purchase shares at a certain price by fraud the measure of damages which he is entitled to recover from the seller is the difference between the price which he paid for the shares and the real price of the shares on the date on which the shares were purchased. Ordinarily the market rate of the shares on the date when the fraud was practised would represent their real price in the absence of any other circumstance. If, however, the market was vitiated or was in a state of flux or 790 panic in consequence of the very fact that was fraudulently concealed, then the real value of the shares has to be determined on a Consideration of a ...