P.N.Goel, J. - (1.) Main question arising in this appeal is whether the contract entered into by the parties was a forward contract as defined in the Forward Contracts (Regulation) Act, 1952, hereinafter called the Act.
(2.) Section 17 of the Act prohibits forward contracts in certain cases. This section lays down that the Central Government may, by notification in the official Gazette, declare that no person shall, save with the permission of the Central Government, enter into any forward contract for the sale or purchase of any goods or class of goods specified in the notification. Sub-section (2) of this section further lays down that all forward contracts in contravention of the provisions of sub-section (1) entered into after the date of publication of the notification thereunder shall be illegal.
(3.) Term 'forward contract has been defined in Section 2 (c) as 'means a contract for the delivery of goods at a future date and which is not a ready delivery contract. There are two essentials of this definition, (1) contract for the delivery of goods at a future date and (2) which is not a ready delivery contract. Expression ready delivery contract has been defined in clause (i) of Sec. 2 of the Act in the following words: "Ready delivery contract means a contract which provides for the delivery of goods and the payment of a price therefor either immediately or within such period not exceeding 11 days after the date of contract the period under such contract not being capable of extension by the mutual consent of the parties thereto or otherwise." There is one exception to the prohibition contained in Section 17. That exception is to be found in Section 18 of the Act. The exception is that the provisions of Section 17 shall not apply to non-transferable specific delivery contracts for the sale or purchase of any goods.;