Published on: 02 October, 2023 at 10:52 IST
Court: Supreme Court of India
Citation: Jotindra Lal Mitra V. Purshottam Choubey & Co., (1952)
Honourable Supreme Court of India has held that the Indian Contract Act, 1872 would prevail over the rules for regulation of a Stock Exchange. It is held that the rules of the organization do not affect the general law of contract which relieves a defendant of performance if he can prove that the plaintiff was not ready and willing to carry out his part of the contract.
5. The plaintiff’s learned counsel argued that the contracts between the parties were governed by the rules of the Calcutta Stock Exchange because, though the plaintiff was not a member of the Exchange, the contracts between him and the defendant were, according to their agreements, to be governed by those rules.
The counsel contended that on a proper construction of those rules the defendant was bound to offer delivery before any question of the plaintiff’s unwillingness to accept could arise.
6. In our opinion, the rules cited are mere rules for the regulation of the business of the Stock Exchange. They are based on the assumption that both parties are in earnest and desire to go through with the contract. They do not affect the general law of contract which relieves a defendant of performance if he can prove that the plaintiff was not ready and willing to carry out his part of the bargain; also, it is open to the parties by express or implied agreement later to vary the terms of their original contract.
Drafted By Abhijit Mishra
