FIRM GIRDHAR MAL KAPUR CHAND versus FIRM DEV RAJ MADAN GOPAL

Citation: [1964] 1 S.C.R. 995 · Decided: 11-02-1963 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

1 S.C.R. 
SUPREME COURT REPORTS 
995 
FIRM GIRDHAR MAL KAPUR CHAND 
v. 
FIRM DEV RAJ MADAN GOPAL 
(P. B. GAJENDRAGADKAR, K. N. WANOHOO, 
M. HIDAYATULLAH, K. c. DA8 GUPTA 
and J.C. SHAH, JJ.) 
Partnership-Partnership regi.,tered 
before partition of 
India-Suit 
by firm, 
if barred-Indian Partnership Act, 
(IX of 1932), 8, 69 (2). 
Forward 'L'ransaction-Such tran.•aetion in cotton and edible 
oil seeds, if prohibited by law-EMential Supplie., (TemJ>orary 
Pow.er") Act, 1946 (XXIVof 1940), ''· 2, 3, 5--,--Cotton Options 
(Fomard Contracts and Prohibition) Onler, 1.943-0il Seeds 
(Forivard Contract" and Prohibition) Order, 1943-Defenc. of 
India Rule.,, r. SJ. 
The respondent, a partnership firm, brought a suit for 
recovery of the amount with interest due to it on account of 
the purchas.s and sales of cotton-seeds and bales of cotton 011 
behalf of the appellant firm. 
In contesting the suit the appe-
llant 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 wero prohibited by law and 
that the plaintiff fmn 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 plain-
tiffs 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 
tmal 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 
point• of law were rabed by the appellant in this Court, namely, 
1963 
__ , 
Firm Girilw M«I 
K.p,,, Clumd. 
v. 
c 
-- Firm De• R&j 
· }.fado" G•,•l 
.. 9!lG SUPREME COURT REPORTS [l!l64] VOL. 
(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 !!eeds \Vas illegal and thus 
prohibited by faw. 
· 
· 
. 
He.lil,_ that once there was .re~istration undef the Indian 
Partnership Act, it continues to be effective and valid under that 
Act in the area to which it applied before the partition of India 
so Ion~ as it\vas not cancelled in accordance with law. 
' 
41 
•• 1 
· Eombay Cuttmi Export & Import Co._v. Bharat Sarvodaya 
· 
Jfill Co., I. L. R. Dom. (1958) 1351, approved. 
' 
. 
. 
! 
lleld, further, that the forward contracts . in cotton •ee<l• 
v.rere not prohibited by la\v. 
A1 cotton and cotton seeds are 
not included in the definition of e5'ential commodity, any 
previous order with respect to them will be inconsistent with 
the new order and cannot continue under s. 5 of the fasential 
Supplies Act, 1946. 
. C1vIL APPELLATEjumsDICTION : Civil Appeal 
No. 240 of HJGI. 
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· 
. l 
, 
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' 
Appeal from the judgment and decree dated 
November 21, Hl58, of the Punjab High Court.at 
Chandigarh in Regular First Appeal . No. 266 of 
Hl5l. 
C; B. Agarwala and A. N. Goyal, ·for the 
appellant. 
. 
A. V . .Viswanatha Sastri, 0. P •. Jlalhotra and 
},Johan Behari Lal, for the respondent. 
I 
1963. February 11. 
The Judgment of the 
Court was delivered by 
DAs Gu:rTA, J.-The respondent a partnership 
firm carrying on business as commission agents in the 
town of Khanna in Punjab brought the suit out of 
which this appeal has arisen against the appellant 
firm for recovery of Rs. 17,615/10/-claimed to. be due 
to it on account of the purchases and sales made on 
. behalf of the appellant firm. Between December 1946 
·-
; 
• 
1 
.. 
I S.C.R. 
SUPREME COURT REPORTS 
997 
and February 3, 194 7, 7600 bags of cotton seeds 
were, according to the plaint purchased by the 
respondent on behalf of the appellant firm at various 
rates, out of which 5300 bags are said to have been 
sold by it on behalf of the appellant firm between 
the dates of January 2, I!J47 and February 3, 1947. 
Thus, on February :J, l!l4 7, 2300 bags of cotton-seeds 
were left on its hands. 
I

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