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1961 Supreme(SC) 62

SUPREME COURT OF INDIA
17th February, 1961
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
Jute and Gunny Brokers Ltd. and others etc. Appellants
Versus
the Union of India and others, etc. Respondents.
Civil Appeals Nos. 314-316 and 778 of 1957.
Advocates appeared
M/s. S. Chowdhury and B. Das, Sr. Advocates (Mr. P. K. Ray Chaudhury, Advocate, with them), for Appellants; Sir S. M. Bose, Mr. B. Sen, Senior Advocate (Mr. B. N. Ghosh, Advocate, with them), for respondents Nos. 3-18, 20-40, 42, 44-47. Mr. B. N. Ghosh, Advocate, for Respondent No. 48; Mr. M. C. Setalvad, Attorney-General for India (M/s. R. Ganapathy Iyer, and D. Gupta, Advocates, with him), for Respondent No. 1; Mr. S. N. Mukherjee, Advocate, with him), for Respondent No. 2. Mr. N. C. Chatterjee, Senior Advocate (Mr. P. K. Chatterjee, Advocate, with him), for Respondent No. 51.
In C. A. No. 315/57 :
Sir S. M. Bose, M/s. S. Chowdhury and B. Sen, Senior Advocates, (Mr. B. N. Ghosh, Advocate, with them), for Appellants; Mr. M. C. Setalvad, Attorney-General for India (M/s. R. Ganapathy Iyer and D. Gupta, Advocates, with him), for Respondent No. 1; Mr. S. N. Mukherjee, Advocate, for Respondent No. 2; Mr. P. K. Ray Chaudhury Advocate, for Respondent No. 6; Mr. B. Das, Sr. Advocate (Mr. P. K. Ray Chaudhury, Advocate, with him), for Respondents Nos. 8-28; Mr. P. K. Chatterjee, Advocate, for Respondent No. 30.
In C. A. No. 316/57 :
Mr. S. Chowdhury, Senior Advocate (Mr. P. K. R .Chaudhury, Advocate, with him), for Appellant; Mr. M. C. Setalvad, Attorney-General for India (M/s. R. Ganapathy Iyer and D. Gupta, Advocates, with him), for Respondent No. 1; Mr. S. N. Mukherjee, Advocate for Respondent No. 2; Mr. B. Das, Senior Advocate (Mr. B. N. Ghosh, Advocate, with him), for Respondents Nos. 3-18, 20-40,42, 44-47 and 49-69; Mr. N. C. Chatterjee, Senior Advocate (Mr. P. K. Chatterjee, Advocate, with him), for Respondent No. 71.
In C. A. No. 778/57 :
Mr. M. C. Setalvad, Attorney-General for India (M/s. R. Ganapathy Iyer and D. Gupta, Advocates, with him), for Appellant; Sir S. M. Bose, Mr. S. Chowdhury and Mr. B. Sen, Senior Advocates (Mr. B. N. Ghosh, Advocate, with them), for Respondents Nos. 2-17, 19-39, 41 and 43-46; Mr. Sukumar Ghose, Advocate, for Respondent No. 40; Mr. S. Chawdhury, Senior Advocate (Mr. P. K. Ray Chaudhury, Advocate with him), for Respondent No. 47; M/s S. Chowdhury and B. Das, Senior Advocates (Mr. P. K. Ray Chaudhrry, Advocate with them), for Respondents Nos. 49-69; Mr. N. C. Chatterjee, Senior Advocate (Mr. P. K. Chatterjee, Advocate, with him), for Respondent No. 71.

Advocates:
B.DAS, B.N.GHOSH, B.SEN, D.GUPTA, D.GUTPA, M.C.SETALVAD, N.C.CHATTERJI, P.K.CHATTERJI, P.K.ROY CHAUDHURY, R.Ganapathy Iyer, S.Chaudhary, S.M.BOSE, S.N.MUKHERJEE, SUKUMAR GHOSH

Headnote:Where goods are unascertained - Title cannot pass unless goods are ascertained - MANAGING AGENT OF A CORPORATION - PRINCIPAL OFFICER - PRINCIPAL OFFICER WILL INCLUDE MANAGING AGENT

       

       – it is well established that title cannot pass unless the goods are ascertained in view of Section 18 of the Act, as held in Jute and Gunny Brokers Ltd. v. Union of India, AIR 1961 SC 1214 following in the case of Juggilal Kamlapat v. Pratapmal Rameshwar, AIR 1978 SC 389 where the contracts were for the sale of unascertained goods by description , Section 23 of the Act provides that in such case, if goods of that description and in a deliverable state are uncionditionally appropriated to the contract by the seller with express or implied assent of the buyer, the property in the goods passes to the buyer. The assent may be given either before or after the appropriation is made. But in the present case the plaintiff was the seller, did not have the necessary control over the goods to be able to appropriate them to the contracts even with the consent of the buyer.

       – it is well established that the title cannot pass until the goods are ascertained in view of the provisions of this section, as held in Jute and Gunny Brokers Ltd. v. Union of India, AIR 1961 SC 1214, as followed in Juggilal Kamlapat v. Pratapmal Rameshwar, AIR 1978 SC 389. See also decision in Badri Prasad v. The State of Madhya Pradesh, AIR 1970 SC 706.

       -even though in Rules I and 3, a principal officer must be a human being, it is not however necessary that for the purposes of Rule 2 also he must be a human. Rule 2 relates to service and clause (b) thereof clearly shows that the service to be affected need not necessarily be on human being connected with the corporation, for under clause (b) the service will be effective if the summons is left or sent by post addressed to the corporation at the registered office or where there is no registered office then at the place where the corporation carries on business - Jute & Gunny Brokers, Ltd. v. Union of India, AIR 1961 SC 1214.

       

Judgment

WANCHOO, J. : These four appeals on certificates granted by the High Court at Calcutta arise out of one judgment and will be dealt with together. The brief facts necessary for present purposes are these : In September, 1946, there was food shortage in the Country. In order to relieve this shortage, the Government of India entered into an agreement with the President of Argentine Institute for Promotion of Trade by which it undertook to freeze, requisition and take over and sell to the Argentine Institute and Ship to Argentine 30,000 tons of hessian and in return the Institute guaranteed to obtain licences for shipment from Argentine of maize and wheat offals already purchased by the Government of India in Argentine. This agreement was arrived at on September 27, 1946. In anticipation of this agreement, the Government of India on September 20, 1946, addressed letters to the managing agents of various jute mills in Bengal demanding from them information as to stocks of hessian of certain description held by the mills under their managing agencies and prohibiting them from selling, transferring, removing, consuming or otherwise disposing of any article enumerated in Sch. B to the communication. This demand was made under sub-rule (5) of R. 75A of the Defence of India Rules (hereinafter called the Rules). After the information had been gathered, the Government of India issued an order on September 30, 1946, to the same managing agents requisitioning the hessian specified in the schedule to the order and directing them and every other person in possession of the said property to deliver it to the Director of Supplies, Calcutta, and in the meantime not to dispose of the property in any manner without the permission of the Central Government. The schedule to the order in each case indicated the mill from which the requisition was made, the quantity, the description of the hessian and the name of the registered stock-holders. These requisition orders were served upon the managing agents of the mills under sub-rule (1) of R. 75A of the Rules on that very day. Thereafter on the same day, that is, September 30, 1946, the Government of India issued a notice under sub-rule (2) of R. 75A to the managing agents communicating that it had been decided to acquire the property under that sub-rule. The managing agents were further informed that by virtue of sub-rule (3) of R. 75A the said property would vest in the Central Government at the beginning of the day on which the notice was served upon them free from any mortgage, pledge, lien or other similar encumbrance. The notices of acquisition were accompanied by schedules similar to the schedules accompanying the requisition-orders. This notice of acquisition was also served on the same day on all the managing agents. Further on the same day the deputy Director of Supplies, Government of India, wrote to the Secretary, Indian Jute Mills Association, that shipping instructions would be issued in due course by the Director of Supplies, Calcutta, with respect to hessian requisitioned and acquired under the orders and notices already referred to. The Government then tried to take possession of the hessian requisitioned and acquired but the mills and the holders of delivery-orders resisted the Government s attempt on the ground that the orders of requisition and acquisition were invalid. The Government of India then filed the suit out of which the present appeals have arisen on December 11, 1946, for enforcing the orders of requisition and acquisition and also applied for a receiver to be appointed. This application was resisted and it became apparent that it would take some time before it could be disposed of. As ships which were to carry the hessian to Argentine were ready and shipment could not be delayed, the Government on January 7, 1947, promulgated an Ordinance, being Ordinance No. 1 of 1947, whereby notwithstanding the pendency of the suit the title and possession of the goods requisit





































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