Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Forward transaction |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Partnership - Partnership registered before partition of India - Suit by firm, if barred - Indian Partnership Act, (IX of 1932), s. 69 (2). Forward Transaction-Such transaction in cotton and edible oil seeds, if prohibited by law-Essential Supplies (Temporary Powers) Act, 1946 (XXIV of 1940), ss. 2, 3, 5 - Cotton Options (Forward Contracts and Prohibition) Order, 1943- Oil Seeds (Forward Contract" and Prohibition) Order, 1943-Defence of India Rules r. S1. The respondent, a partnership firm, brought a suit for recovery of the amount with interest due to it on account of the purchases and sales of cotton-seeds and bales of cotton on behalf of the appellant firm. In contesting the suit the appellant while admitting trade relations with the plaintiff firm, disputed the correctness of the accounts. It was urged that the transact ions were wagering contracts and so void in law, that they being forward transactions were prohibited by law and that the plaintiff firm which was registered at Lahore before the partition of India ceased to be a registered firm thereafter for purposes of the Indian Partnership Act. The trial court accepted the plaintiffs story as regards the transactions but held as regards the accounting that the plaintiffs were bound to give certain credits to the defendants and the price of 2300 bags of cotton seeds and 50 bales of cotton on the final sale was directed to be credited in favour of the defendant at the market rate on May 28, 1917. Other directions as regards calculations of incidental charges and interest were also given. The learned Judge passed a final decree in favour of the plaintiff with appropriate costs. Against this decree both the respondent and the appellant appealed to the High Court. The High Court dismissed the appellant's appeal and allowed the respondent's appeal increasing the decretal amount. Two points of law were raised by the appellant in this Court, namely, (i) the requirement of s. 69 (2) of the Indian Partner.hip Act was, not satisfied and (ii) the transaction being a forward transaction in cotton and edible oil seeds was illegal and thus prohibited by law. |
Judge | Hon'ble Mr. Justice K.C. Das Gupta |
Neutral Citation | 1963 INSC 29 |
Petitioner | Firm Girdhar Mal Kapur Chand |
Respondent | Firm Dev Raj Madan Gopal |
SCR | [1964] 1 S.C.R. 995 |
Judgement Date | 1963-02-11 |
Case Number | 240 |
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