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1961 (2) TMI 51 - SUPREME COURTWhether the property in the goods represented by the pucca delivery orders can be said to have passed to the holders thereof, when they receive them? Whether the Government of India is also estopped from challenging that the title passed to the holders of the pucca delivery orders as soon as they got the delivery orders? Whether due notice was given to the mills under rule 75A(2)? Held that:- In the present case so far as the question of title is concerned, there can be no doubt in view of section 18 of the Sale of Goods Act that title in these cases had not passed to the holders of the pucca delivery orders on September 30 1946, for the goods were not ascertained till then, whatever may be the position of the holders of the pucca delivery orders in a suit between them and the mills to enforce them. It cannot be said that the Government of India when it takes action under rule 75A (2) is claiming through anybody; it acquires the totality of the rights in the property by virtue of the power vested in it by the statute, eliminating all subsisting private rights. There can, in such a case, be no estoppel against the Government of India qua the holders of the pucca delivery orders, for the Government of India is not stepping into the shoes of the mills but is acquiring title which is paramount in nature. In consequence rule 75A(3) would apply and the property in the goods passed to the Government of India on September 30, 1946. The appeal of the Union of India therefore is allowed and a declaration is granted that the goods were validly requisitioned and acquired and that the orders of requisition and notices of acquisition were valid and binding on the respective defendants, and the goods specified therein vested in the Government of India on September 30, 1946.
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