Judgment

AYYANGAR, J.: This appeal, by special leave, raises for consideration a very short point regarding the proper construction of Bye-law 137B of the Bombay Bullion Association Ltd. which will hereafter be referred to as the Association and in particular whether on the facts established in this case the requirement of the said bye-law has been satisfied.

2. The appellant is a member of the first respondent-the Association and carries on business as a bullion merchant. By a notification dated March 14, 1949, the Government of Bombay in exercise of the powers conferred by S. 6 of the Bombay Forward Contracts Control Act, 1947 (Bombay Act LXIV of 1947), sanctioned the bye-laws framed by the Association. Under the said Act the members of the Association were permitted to carry on forward dealings in bullion subject to the said bye-laws. The appeal is concerned with the regularity of a purchase effected by the Association purporting to act under its bye-laws, of a quantity of silver at the risk of the appellant, on the footing that he had defaulted in performing his contract as a seller on February 3, 1953 which was a settlement day. The Association made this purchase treating the