TMI Blog1967 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the said letter. The offer was accepted by the Director- General, Supplies Disposals on behalf of the respondent by his letter No. CAL/ DL-1/5750-L/II/Modi/158 dated September 16, 1960. The appellant deposited with the Reserve Bank of India the sum of ₹ 20,182-50 P. towards security deposit on September 22, 1960 as required by the acceptance letter. The date of delivery fixed under the contract was November 30, 1960 and the respondent sent the appellant despatch instructions dated November 21, 1960, through the Director of Supplies Disposals. On November 30, 1960 the appellant, however, intimated to the respondent that the contract was void and illegal and requested that the security deposit should be refunded. The case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is whether the contract in question is a transferable or non- transferable specific delivery contract within the meaning of the Act. Section 2(i) of the Act defines a ready delivery contract as meaning a contract which provides for the delivery of goods and the payment of a price therefor, either immediately or within such period not exceeding eleven days after the date of the contract......... . A forward contract is defined under s. 2(c) as meaning a contract for the delivery of goods at a future date and which is not a ready delivery contract . Section 2(m) defines a specific delivery contract as meaning a forward contract which provides for the actual delivery of specific qualities or types of goods during a specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; of the Central Government, enter into any forward contract for the sale or purchase of any goods or class of goods specified in the notification and to which the provisions of section 15 have not been made applicable, except to the extent and in the manner, if any, as may be specified in the notification. (2)All forward contracts in contravention of the provisions of sub-section (1) entered into after the date of publication of the notification thereunder shall be illegal. (3)Where a notification has been issued under sub-section (1), the provisions of section 16 shall, in the absence of anything to the contrary in the notification, apply to all forward contracts for the sale or purchase of any goods specified in the notification enter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te or bags made of such Hessian cloth and sacking cloth made of jute or bags made of such Sacking cloth) in the City of Calcutta. Explanation :- The expression 'City of Calcutta' means (1) Calcutta as defined in clause (11) of Section 5 of the Calcutta Municipal Act, 1951, (West Bengal Act No. 33 of 1951), together with part of the Hastings North or South edge of Clyde Row and Strand Road to the river bank and the areas which were previously under the new defunct Tollygunge Municipality; (2) The Port of Calcutta; and (3) The Districts of 24 Parganas, Nadia, Howrah and Hooghly . It was argued on behalf of the appellant that the contract in question was a forward contract within the meaning of the Act and was prohibited by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw which prevents them from setting up that term. The terms of the contract can be expressed or there can be a necessary implication of a term from what has been expressed in the contract. The question therefore resolves in the ultimate analysis upon the construction of the terms of the contract between the parties. In this connection it is well-established that in construing such a contract it is legitimate to take into account the surrounding circumstances for-ascertaining the intention of the parties. As was pointed out by this Court in Khardah Company Ltd. v. Raymon Co. (India) Private Ltd.,(1), the absence of a specific clause prohibiting transfer is not conclusive one way or the other on the question whether there was an agreement b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rriving in bulk and it was therefore of utmost importance that shipment of the total quantity ordered shall be made in the vessels nominated by the purchaser. There is also a specific provision in the contract that the stores shall be, inspected prior to shipment by the A.T.I.G.S., East India, Hastings, Calcutta, or his representative. There is also a further stipulation that after the goods are inspected arrangements should be made to ship the stores in accordance with the instructions contained in the contract and that goods which are not accepted in inspection should not be shipped. The name of the consignee is given in the contract as Asst. Director (Storage), Ministry of Food Agriculture, Transit Shed No. 4, Visakhapatnam Port, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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