MODI & CO. versus UNION OF INDIA

MODI & CO. versus UNION OF INDIA

On proper construction of the contract and having regard to surrounding circumstances, there was an implied agreement between the parties that the rights and liabilities under the contract were not to be transferred and the bill of lading relating to the contract was also not to be transferred. Therefore, the contract was a non-transferable specific delivery contract within the meaning of s. 2(f) of the Act and not hit by the notification dated March 29, 1958 issued by the Central Government under s. 15(1) of the Act.

Parties
Appellant: Modi & Co.; Respondent: Union of India
Jurisdiction
India
Judgment Date
07 December 1967
Procedural Posture
Civil Appeal / Supreme Court (on Appeal From Dismissal of Application Under S. 33 of Arbitration Act by Calcutta High Court)
Outcome
Appeal dismissed with costs.
Legal Topics
Forward Contract Regulation, Arbitration, Interpretation of Contracts
Commercial Law Forward Contract Regulation Arbitration Interpretation of Contracts

Case Brief

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Parties

Modi & Co.

Appellant

Union of India

Respondent

Procedural Posture

Civil Appeal / Supreme Court (on Appeal From Dismissal of Application Under S. 33 of Arbitration Act by Calcutta High Court)

Legal Issues

  1. 1 Whether the contract for sale of twills was a non-transferable specific delivery contract under the Forward Contracts (Regulation) Act, 1952, and therefore, not hit by the Central Government notification under s. 15(1)
  2. 2 Whether the arbitration clause in such a contract was valid

Ratio Decidendi

On proper construction of the contract and having regard to surrounding circumstances, there was an implied agreement between the parties that the rights and liabilities under the contract were not to be transferred and the bill of lading relating to the contract was also not to be transferred. Therefore, the contract was a non-transferable specific delivery contract within the meaning of s. 2(f) of the Act and not hit by the notification dated March 29, 1958 issued by the Central Government under s. 15(1) of the Act.

Court Disposition

Appeal dismissed with costs.

Orders

  • The decision of the Calcutta High Court is affirmed.