MOHANLAL CHHAGANLAL SHAH Vs. BISSESARLAL CHIRAWALLA

JUDGEMENT

(1.) The plaintiff and the defendants are merchants and members of the Bombay Bullion Exchange, Ltd.

(2.) There were transactions between the plaintiff and the defendants for purchase and sale of gold in the mon September, 1944, which transactions were subject to the rules and regulations of the Bombay Bullion Exchange, Ltd. According to the plaintiff there were sales of 1,000 tolas of gold effected on the respective dates, September 13, 1944, September 14, 1944, a September, 16, 1944, These transactions are admitted by the defendants. There were also transactions for the purchase of 500 tolas of gold on September 16, 1944, which, again are admitted by the defendants. The defendants, however, contend that there were two transactions for purchase of 500 tolas of gold by the plaintiff from the defendants effected on September 15, 1944, which transactions are disputed by the plaintiff. On this state of affairs the plaintiff contends that as against the transactions for the sale of 1,000 tolas of gold, there were only transactions for the purchase of the 500 tolas of gold by him, with the result that on the due date for these transactions of sale there were outstanding transactions of 500 tolas of gold in respect of which, the defendants on a delivery order in that behalf being tendered by the plaintiff to them were bound to take delivery of the same. The plaintiff accordingly on the due date tendered to the defendants the delivery order in respect of 500 tolas of gold, and on the defendants committing a breach of their part of the said contracts, the plaintiff sold the delivery order in respect of these 500 tolas of gold in the market and claimed the deficit arising on such sale. The suit has been filed to recover this sum from the defendants. .

(3.) The defendants; on the other hand, contend that as a result of the two transactions of the purchase by the plaintiff from them of 250 tolas each of gold effected on September 15, 1944, all the said sale transactions of 1,000 tolas of gold were squared and on the due date there was no transaction outstanding which could be the subject-matter of the issue of any delivery order by the plaintiff.