Jay Engineering Works v. Industries Facilitation Council

Facts

• A party sought to assign a claim for damages arising from a commercial dispute
• The damages were unliquidated (not yet determined or quantified by court)
• The question was whether this claim constituted an actionable claim transferable under S.130

Issue

1. Whether an unquantified claim for damages constitutes an "actionable claim" transferable under S.130 TPA.

Held

• No. A mere right to sue for unliquidated damages is not an actionable claim. S.3 defines actionable claim as a "claim to any debt." A debt is a liquidated (determined) sum. An unliquidated claim for damages is not yet a "debt" until quantified by court or agreement.

Ratio Decidendi

The distinction is between a "debt" (determined sum owed) and a "claim for damages" (uncertain amount that may or may not be awarded). Only the former is an actionable claim. This prevents trafficking in litigation and speculative assignment of uncertain claims.