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1969 Supreme(SC) 368

SUPREME COURT OF INDIA
A.N.Grover : J.C.Shah : V.Ramaswami
Ram Narain Mahato
Versus
State Of M.P.
Case No. : 1563 of 1966
Date of Decision : 9/16/69
Advocates Appeared: Chaturvedi Sharad Chandra : Lal Naunit : Shroff I.M.

Advocates:
I.M.SHROFF, NAUNIT LAL, SHARAD CHANDRA CHATURVEDI

Headnote:(1) Sale of Goods Act, 1930 - Ss. 2 (7), 18 & 21 - trees on the entire forest not sold - the seller was to cut the trees and purchaser to take away the timber - goods sold unascertained - is not a sale but promise to sell - property in goods when passes - property in unascertained goods may pass if there is such contract.

       According to the deed of sale the seller was to cut the trees at his expense, and supply the logs to the purchaser. This is not a contract under which the trees of the entire forest in a particular village were agreed to be sold. Goods to be sold were, therefore, unascertained. A contract for unascertained goods is not & complete sale, but only a promise to sell. (1906) AC 419 relied on.

       Where a thing is attached to, or forms part of land at the time of the contract and which is to be severed by the buyer, the property in the thing passes, in the absence of a contract to the contrary, to the buyer on the severence of the thing from the land. This is clearly the effect of section 18 of the Sale of Goods Act; Again under section 21 of the Act, even if there be a contract for the sale of specific goods, but the seller is obliged under the terms of the contract to do something to the goods for the purpose of putting them into a deliverable state, the property passes only when the thing agreed to be done and the buyer is informed thereof. [Para 10

       It is true that the provisions of sections 18 to 44 are rules of construction of contracts for determining interest of the parties. If there be a contract that the property is to pass even before the property is put into a deliverable state, the property may pass. But if the contract is silent, the above rules apply. [Para 11

       (2) Abolition of Proprietary Rights (Estates, Mahals, Alienared Lands) Act. 1950 (M. P.) - Ss. 3 & 4 - contract for sale of future goods in timber of a forest with the ex-proprietor - not enforceable against the State after the vesting.

       The contractor claimed compensation who was prevented from enforcing his claim in respect of forest tree under the terms of the contract entered into with the Jagirdar. The contract was one relating to sale of future goods, but it was not a contract for sale of specific property in a deliverable state. Title to the logs which the plaintiff had agreed to purchase did not vest in him at the date on which the estate vested in the State of Madhya Pradesh. On that ground the plaintiff's claim to cut standing trees after the vesting of the Jagir in the State cannot be sustained. 1963 JLJ 1=1963 RN 1, 1962 RN 512, 1964 RN SN 6 relied on. [Para 17

J.C.SHAH, J.

(1) THAKUR Randhirshah, Jagirdar of Sonpur Jagir executed adeed dated 5/08/1949,in favour of Ram Narain Mahto-hereinafter called, the plaintiff"-relating to sale of timber, for Rs. 51,501.00 and received Rs. 15,000.00 in part payment. On 19/02/1951, the Forest Officer of the State of Madhya Pradesh prevented the plaintiff and the Jagirdar from cutting the trees. On 31/03/1951, the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 (No. I of 1951) was brought into force and by virtue of that Act the interest of the Jagirdar in the estate vested in the State. On 14/06/1954, the plaintiff instituted an action in the court of the Additional District Judge. Chhindwara, for a decree for Rs. 1,50,000.00 for breach of the contract of sale against the State of Madhya Pradesh and against the Jagirdar. There were four heads of the claim for compensation : (i) Rs.21,375/. being the value of 4,275 logs

of timber which were cut but

which the plaintiff could not

remove ;

(ii) Rs.30,000/- for 6,000 logs of timber which

though cut were not found on

the spot and some of which

were either burnt or stolen ;

(iii) Rs.30,000/- on account of 6,000 logs of

timber from the standing

timber of four villages which

had not been cut ; and

(iv) Rs.75,000/- for 15,000 logs of timber which

the plaintiff could not cut

from the remaining villages.

@Þf The plaintiff claimed compensation for the logs of timber at the rate of Rs. 5.00 per log in the aggregate.

(2) THE State of Madhya Pradesh contended that the Jagirdar had started illegal cutting for which proceedings were taken against him and that he was prevented from cutting any timber; that sometime thereafter the logs of timber lying in the forest were "hammer-marked" and the Jagirdar was permitted to remove the logs till 31/03/1953, subject to certain conditions, e. g., obtaining Malguzari passes for the transit and submitting weekly statement of the removal, that the agreement) dated 5/08/1949, being unregistered was inadmissible in evidence, and created no title, that in any event the deed could not be enforced against the State because of the vesting of the Jagir under the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950, in the State ; that the contract created a mere personal liability enforceable against the Jagirdar, and that the State was not the successor-in-interest of the Jagirdar but claimed a right to the Jagir under a statute.

(3) THE Trial court held that the plaintiff was entitled to the value of the logs of timber described under the four heads of his claim, at the rate of Rs. 1/8.00 per log. Accordingly the Trial court determined the compensation payable to the plaintiff at Rs. 46,912.00 and after giving credit for Rs. 36,000.00 payable by the plaintiff to the Jagirdar and to which the State became entitled, passed a decree for the balance of Rs. 10,912.00 and interest thereon. The plaintiff and the State appealed to the High court. The High court agreed with the Trial court that the rate per log could not exceed Rs. 1/800. The High court disallowed the claim of the plaintiff for items (ii), (iii) and (iv) and for item (i) the High court allowed Rs. 3,712.00 being the value of 2475 logs of timber which had not been removed. The High court held that out of the amount awarded nothing was liable to be deducted towards the alleged arrears due to the Jagirdar. The plaintiff appeals to this court with certificate granted by the High court.

(4) COUNSEL for the plaintiff urged that the courts below were in error holding: (1) that the rate per log of timber was Rs. 1/8.00 ; (2) that the High court erred in disallowing compensation for 6,000.00 logs of timber which were cut and appropriated by the plaintiff but which were on account of negligence of the servants of the State either burnt or stolen ; (3) that the High court erred in disallowing compen

























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