CHAPTER III
EFFECTS OF THE CONTRACT
Transfer of Property as between Seller and Buyer
18. Goods must be ascertained.---Where there is a contract for the sale of
unascertained goods, no property in the goods is transferred to the buyer
unless and until the goods are ascertained.
19. Property passes when intended to pass.---(1) Where there is a contract
for the sale of specific or ascertained goods the property in them is transferred
to the buyer at such time as the parties to the contract intend in to the
transferred.
(2) For the purpose of ascertaining the intention of the parties regard shall
be had to the terms of the contract, the conduct of the parties and the circumstance
of the case.
(3) Unless a different intention appears, the rules contained in section 20
to 24 are rules for ascertaining the intention of the parties as to the time
at which the property in the goods is to pass to the buyer.
20. Specific goods in a deliverable state.--- Where there is an unconditional
contract for the sale of specific goods in a deliverable state, the property
in the goods passes to the buyer when the contract is made, and it is immaterial
whether the time of payment of the price or the time of delivery of the goods,
or both, is postponed.
6. S.16-A, inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.2
with effect from 23-10-1994.
21. Specific goods to be put into a deliverable state.--- Where there is a
contract for the sale of specific goods and the seller is bound to do something
of the goods for the purpose of putting them into a deliverable state, the
property does not pass until such thing is done and the buyer has notice thereof.
22. Specific goods in a deliverable state, when the seller has to do anything
thereto in order to ascertain price.---Where there is a contract for the sale
of specific goods in a deliverable state, but the seller is bound to weigh,
measure, test or do some other act or thing with reference to the goods for
the purpose of ascertaining the price, the property does not pass until such
act or thing is done and the buyer has notice thereof.
23. Sale of unascertained goods and appropriation.---(1) Where there is a
contract for the sale of unascertained or future goods by description and
goods of that description and in a deliverable state are unconditionally appropriated
to the contract, either by the seller with the assent of the buyer or by the
buyer with the assent of the seller, the property in the goods thereupon passes
to the buyer, Such assent may be express or implied, and may be given either
before or after the appropriation is made.
(2) Delivery to carrier.--- Where, in pursuance of the contract, the seller
delivers the goods to the buyer or to a carrier to other bailee (whether named
by the buyer or not) for the purpose of transmission to the buyer, and does
not reserve the right to disposal, he is deemed to have unconditionally appropriated
the goods to the contract.
24. Goods sent on approval or "on sale or return".--- When goods
are delivered to the buyer on approval or "on sale or return" of
other similar terms, the property therein passes to the buyer---
(a) when he signifies his approval or acceptance to the seller or does any
other act adopting the transaction;
(b) if he does not signify his approval or acceptance to the seller but retains
the does without giving of rejection, then, if a time has been fixed for the
return of the goods, on the expiration of
such time, and, if no time has been fixed, on the expiration of a reasonable
time.
25. Reservation of right of disposal.--- (1) Where there is a contract for
the sale of specific goods or where goods are subsequently appropriated to
the contract, the seller may, be the terms of the contract or appropriation,
reserve the right of disposal of the goods until certain conditions are fulfilled.
In such case, notwithstanding the delivery of the goods to a buyer, or to
a carrier or other bailee for the purpose of transmission to the buyer, the
property in the goods does not pass to the buyer until the conditions imposed
by the seller are fulfilled.
7[(2) Where goods are shipped or are dispatched by railway and are by the
bill of lading or by railway receipt deliverable to the order of the seller
or his agent the seller is prima facie deemed to
reserve the right of disposal].
(3) Where the seller of goods draws on the buyer for the price and transmits
the bill of exchange and 8[bill of landing or railway receipt] to the buyer
together, to secure acceptance or payment of the bill of exchange, the buyer
is bound to return the 9[bill of lading or railway receipt] if he does not
honour the bill of exchange and if he wrongfully retains the 10[bill of lading
or railway receipt] the
property in the goods does not pass to him.
26. Risk prima facie passes with property.---Unless otherwise agreed, the
goods remain at the seller's risk until the property therein is transferred
to the buyer, but when the property therein is transferred to the buyer, but
when the property therein is transferred to the buyer, the goods are at the
buyer's risk whether delivery has been made or not:
Provided that, where delivery has been delayed through the fault of either
buyer or seller, the goods are at the risk of the party in fault as regards
any loss which might not have occurred but for such fault:
Provided also that nothing in this section shall affect the duties or liabilities
of either seller or buyer as a bailee of the goods of the other party.
Transfer of Title
27. Sale by person not the owner.--- Subject to the provisions of this Act
and of any other law for the time being in force, where goods are sole by
a person who is not the owner thereof and who does not sell them under the
authority or with the consent of the owner, the buyer acquires no better title
to the goods than the seller had, unless the owner of the goods is by his
conduct precluded from denying the seller's authority to sell:
------------------------
7. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4
(with effect from the 7th June 1962), for the original subsection (2).
8. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4
with effect from the 7th June, 1962), for "bill of lading"
9. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4
(with effect from the 7th June, 1962), for "bill of lading".
10. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4
(with effect from the 7th June, 1962), for "bill of lading".
Provided that, where a mercantile agent is, with the consent of the owner,
in possession of the goods or of a document of title to the goods, any sale
made by him, when acting in the ordinary course of business of a mercantile
agent, shall be as valid as if he were expressly authorised by the owner of
the goods to make the same; provided that the buyer acts in goods faith and
has not at the time of the contract of sale notice that the seller has not
authority to sell.
28. Sale by one of joint owners.--- If one of several joint owners of goods
has the sole possession of the by permission of the co-owners, the property
in the goods is transferred to any person who buys them of such joint owner
in good faith and has not at the time of the contract of sale notice that
the seller has not authority to sell.
29. Sale by person in possession under voidable contact.--- When the seller
of goods has obtained possession thereof under a contract voidable under section
19 or section 19-A of the Contract Act, 1872, but the contract has not been
rescinded at the time of the sale, the
buyer acquires a goods title to the goods, provided he buys them in goods
faith and without notice of the seller's defect of title.
30. Seller or buyer in possession after sale.---(1) Where a person, having
sold goods, continues or is in possession of the goods or of the documents
of title to the goods, the delivery or transfer by that person or by mercantile
agent acting for him, of the goods or documents of title under any sale, pledge
or other disposition thereof to any person receiving the same in good faith
and without notice of the previous sale shall have the same effect as if the
person making the delivery or transfer were expressly authorised by the owner
of the goods to make the same.
(2) Where a person, having bought or agreed to buy goods, obtains, with the
consent of the seller, possession of the goods or the documents of title to
the goods, the delivery or transfer by that
person or by a mercantile agent acting for him, of the goods or documents
of title under any sale, pledge or other disposition thereof to any person
receiving the same in good faith and without notice of any lien or other right
of the original seller in respect of the goods shall have effects as if such
lien or right did not exist.
CHAPTER IV
PERFORMANCE OF THE CONTRACT
31. Duties of seller and buyer.--- It is duty of the seller to deliver the
goods of the buyer to accept and pay for them, in accordance with the terms
of the contract of sale.
32. Payment and delivery are concurrent conditions.---Unless otherwise agreed,
delivery of the goods and payment of the price are concurrent conditions,
that is to say, the seller shall be ready and wiling to give possession of
the goods to the buyer in exchange for the price, and the buyer shall be ready
and willing to pay the price in exchange for possession of the goods.
33. Delivery.--- Delivery of goods sold may be made by doing anything which
the parties agree shall be treated as delivery or which has the effect of
putting the goods in the possession of the buyer or of any person authorised
to hold them on his behalf.
34. Effect of part delivery.--- A delivery of party of goods, in progress
of the delivery of the whole, has the same effect, for the purpose of passing
the property in such goods, as a delivery of the
whole; but a delivery of part of the goods, with an intention of severing
it from the whole, does not operate as a delivery of the remainder.
35. Buyer to apply for delivery--- Apart from any express contract, the seller
of goods is not bound to deliver them until the buyer applies for delivery.
36. Rules as to delivery.---(1) Whether it is for the buyer to take possession
of the goods or for the seller to send them to the buyer is a question depending
in each case on the contract, express or implied, between the parties. Apart
from any such contract, goods sold are to be delivered at the place at which
they are at the time of the sale, and goods agreed to be sold are to be delivered
at the place at which they are at the time of the agreement to sell, or if
not them in existence, at the place at which they are manufactured or produced.
(2) Where under the contract of sale the seller is bound to send the goods
to the buyer, but no time for sending them is fixed, the seller is bound to
send them within a reasonable time.
(3) Where the goods at the time of sale are in the possession of a third person,
there is no delivery by seller to buyer unless and until such third person
acknowledges to the buyer that he holds the goods on his behalf:
Provided that nothing in this section shall affect the operation of the issue
or transfer of any document of title to goods.
(4) Demand or tender of delivery may be treated as ineffectual unless made
at a reasonable hour. What is a reasonable hour is a question of fact.
(5) Unless otherwise agreed, the expenses of and incidental to putting the
goods into a deliverable state shall be borne by the seller.
37. Delivery of wrong quantity.---(1) Where the seller delivers to the buyer
a quantity of goods less than he contracted to sell, the buyer may reject
them, but if the buyer accept the goods so delivered he shall pay for them
at the contract rate.
(2) Where the seller delivers to the buyer a quantity of goods larger than
he contracted to sell, the buyer may accept the goods included in the contract
and reject the rest, or 11[if the goods delivered are such that it is difficult
or time consuming to separate the quantity contracted for,] he may reject
the whole. If the buyer accept the whole of the goods so delivered, he shall
pay for them at the contract rate.
(3) Where the seller delivers to the buyer the goods he contracted to sell
mixed with goods of a different description not included in the contract,
the buyer may accept the goods which are in accordance with the contract and
reject the rest, or may reject the whole.
(4) The provisions of this section are subject to any usage of trade, special
agreement or course of dealing between the parties.
38. Instalment delivers.---(1) Unless otherwise agreed, the buyer of goods
is not bound to accept delivery thereof by instalments.
(2) Where there is a contract for the sale of goods to be delivered by stated
instalments which are to be separately paid for and the seller makes no delivery
or defective delivery in respect of one or more instalments, or the buyer
neglects or reduces to take delivery of or pay for one or more instalments,
it is a question in each case depending on the terms of the contract and the
circumstances of the case, whether the breach of contract is a repudiation
of the whole contract, or whether it is a severable breach giving rise to
a claim for compensation, but not to a right to treat the whole contract as
repudiated.
39. Delivery to carrier or wharfinger.---(1) Where, in pursuance of a contract
of sale, the seller is authorised or required to send the goods to the buyer,
delivery of the goods to a carrier, whether named by the buyer or not, for
the purpose of transmission to the buyer or delivery of the goods to a wharfinger
for sale custody, is a prima facie deemed to be delivery of the goods to the
buyer.
(2) Unless otherwise authorised by the buyer, the seller shall make such contract
with the carrier or wharfinger on behalf of the buyer as may be reasonable
having regard to the nature of the goods and the other circumstances of the
case. If the seller omits so to do and the goods are lost or damaged in course
of transit or whilst in the custody of the wharfinger, the buyer may decline
to treat the delivery to the carrier or wharfinger as a delivery to himself,
or may hold the seller responsible in damages.
(3) Unless otherwise agreed, where goods are sent by the seller to the buyer
by a route involving sea transit, in circumstances in which it is usual to
insure, the seller shall such notice to the buyer as may enable him to insure
them during their sea transit, and if the seller fails so to do, the goods
shall be deemed to be at his risk during such sea transit.
11. Inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.3 w.e.f.
23-10-1994.
40. Risk where goods are delivered at distant place.--- Where the seller of
goods agrees to deliver them at his own risk at a place other than where they,
are when sold, the buyer shall, nevertheless, unless otherwise agreed, take
any risk of deterioration in the goods necessarily incident to the course
of transit.
41. Buyer's right of examining the goods.--- (1) Where goods are delivered
to the buyer which he has not previously examined, he is not deemed to have
accepted them unless and until he has had a reasonable opportunity of examining
them for the purpose of ascertaining whether they are conformity with the
contract.
(2) Unless otherwise agreed, when the seller tenders delivery of goods to
the buyer, he is bound, on request, to afford the buyer a reasonable opportunity
of examining the goods for the purpose of
ascertaining whether they are in conformity with the contract.
42. Acceptance.--- The buyer is deemed to have accepted the goods when he
intimates to the seller, that he has accepted them, or when the goods have
been delivered to him and he does any act in relation to them which is inconsistent
with the ownership of the seller, or when, after the lapse of a reasonable
time he retains the goods without intimating to the seller that he has rejected
them.
43. Buyer not bound to return rejected goods.--- Unless otherwise agreed,
where goods are delivered to the buyer and he refuses to accept them, having
the right so to do, he is not bound to return them to the seller, but it is
sufficient if he intimates to the seller that he refuses to accept them.
44. Liability of buyer for neglecting or refusing delivery of goods.--- When
the seller is ready and willing to deliver the goods and requests the buyer
to take delivery, and the buyer does not within a reasonable time after such
request take delivery of the goods, he is liable to the seller for any loss
occasioned by his neglect or refusal to take delivery, and also for a reasonable
charge for the care and custody of the goods:
Provided that nothing in this section shall affect the rights of the seller
where the neglect or refusal of the buyer to take delivery amounts to a repudiation
of the contract.
CHAPTER V
RIGHT OF UNPAID SELLER AGAINST THE GOODS
45. "Unpaid seller" defined.--- (1) The seller of goods is deemed
to be an "unpaid seller" within the meaning of this Act---
(a) when the whole of the price has not been paid or tendered;
(b) when a bill of exchange or other negotiable instrument has been received
as conditional payment, and the condition on which it was received has not
been fulfilled by reason of the dishonor of the
instrument or otherwise.
(2) In this Chapter, the term "seller" includes any person who is
in the position of a seller, as, for instance, an agent of the seller to whom
the bill of landing has been endorsed, or a consignor or agent who has himself
paid, or is directly responsible for, the price.
46. Unpaid seller's rights.--- (1) Subject to the provisions of the Act and
of any law for the time being in force, notwithstanding that the property
in the goods may have passed to the buyer, the unpaid seller of goods, as
such, has by implications of law---
(a) a lien on the goods for the price while he is in possession of them;
(b) in case of the insolvency of the buyer a right of stopping the goods in
transit after he has parted with the possession of them;
(c) a right of re-sale as limited by this Act.
(2) Where the property in goods has not passed to the buyer, the unpaid seller
has, in addition to his other remedies, a right of withholding delivery similar
to and co-extensive with his rights of lien and stoppage in transit where
the property has passed to the buyer.
Unpaid Seller's Lien
47. Seller's lien.--- (1) Subject to the provisions of this Act, the unpaid
seller of goods who is in possession of them is entitled to retain possession
of them until payment or tender of the price in the following cases, namely:---
(a) where the goods have been sold without any stipulation as to credit;
(b) where the goods have been sold on credit, but the term of credit has expired;
(c) where the buyer becomes insolvent.
(2) The seller may exercise his right of lien notwithstanding that he is in
possession of the goods as agent or bailee for the buyer.
48. Part delivery.--- Where an unpaid seller has made part delivery of the
goods, he may exercise his right of lien on the remainder, unless such part
delivery has been made under such circumstance as to show an agreement to
waive the lien.
49. Termination of lien.--- (1) The unpaid seller of goods loses his lien
thereon---
(a) when he delivers the goods to a carrier or other bailee for the purpose
of transmission to the buyer without reserving the right of disposal of the
goods;
(b) when the buyer or his agent lawfully obtains possession of the goods;
(c) by waiver thereof.
(2) The unpaid seller of goods, having a lien thereon, does not lose his lien
by reason only that he has obtained a decree for the price of the goods.
Stoppage in Transit
50. Right of stoppage in transit.--- Subject to the provisions of this Act,
when the buyer of goods becomes insolvent, the unpaid seller who has parted
with the possession of the goods has the right of stopping them in transit,
that is to say, he may resume possession of the goods as long as they are
in the course of transit, and may retain them until the payment or tender
of the price.
51. Duration of transit.--- (1) Goods are deemed to be in course of transit
from the time when they are delivered to a carrier or other bailee for the
purpose of transmission to the buyer, until the buyer
or his agent in that behalf takes delivery of them from such carrier or other
bailee.
(2) If the buyer or his agent in that behalf obtains delivery of the goods
before their arrival at the appointed destination, the transit is at an end.
(3) If, after the arrival of the goods at the appointed destination, the carrier
or other bailee acknowledges to the buyer or his agent that he holds the goods
on his behalf and continues in possession of them as bailee for the buyer
or his agent, the transit is at an end it is immaterial that a further destination
for the goods may have been indicated by the buyer.
(4) If the goods are rejected by the buyer and the carrier or other bailee
continues in possession of them, the transit is not deemed to be at an end,
even if the seller has refused to receive them back.
(5) When goods are delivered to a ship chartered by the buyer, it is a question
depending on the circumstances of the particular case, whether they are in
the possession of the master as a carrier or as agent of the buyer.
(6) Where the carrier or other bailee wrongfully refuses to deliver the goods
to the buyer or his agent in that behalf, the transit is deemed to be at an
end.
(7) Where part delivery of the goods has been made to the buyer or his agent
in that behalf, the remainder of the goods may be stopped in transit, unless
such part delivery has been given in such
circumstances as to show an agreement to give up possession of the whole of
the goods.
52. How stoppage in transit is effected.--- (1) The unpaid seller may exercise
his right of stoppage in transit either by taking actual possession of the
goods, or by giving notice of his claim to the carrier of other bailee in
whose possession the goods are. Such notice may be given either to the person
in actual possession of the goods or to his principal. In the later case the
notice, to be effectual, shall be given at such time and in such circumstances
that the principal, by the exercise of reasonable diligence, may communicate
it to his servant or agent in time to prevent a delivery to the buyer
(2) When notice of stoppage in transit is given by the seller to the carrier
or other bailee in possession of the goods, he shall re-deliver the goods
to or according to the directions of the seller. The expenses of such re-delivery
shall be borne by the seller.
Transfer by Buyer and Seller
53. Effect of sub-sale or pledge by buyer.--- (1) Subject to the provisions
of this Act, the unpaid seller's right of lien or stoppage in transit is not
affected by any sale or other disposition of the
goods which the buyer may have made, unless the seller has assented thereto:
Provided that where a document of title to goods has been issued or lawfully
transferred to any person as buyer or owner of the goods, and that person
transfers the documents to a person who takes the documents in good faith
and for consideration, then, if such last mentioned transfer was by way of
sale, the unpaid seller's right of lien or stoppage in transit is defeated,
and if such last mentioned transfer was by way of pledge or other disposition
for value, the unpaid seller's right of lien or stoppage in transit can only
be exercised subject to the rights of the transferee.
(2) Where the transfer is by way of pledge, the unpaid seller may require
the pledge to have the amount secured by the pledge satisfied in the first
instance, as far as possible, out of any other goods or securities of the
buyer in the hands of the pledgee and available against the buyer.
54. Sale not generally rescinded by lien or stoppage in transit.---(1) Subject
to the provision of this section, a contract of sale is not rescinded by the
mere exercise by an unpaid seller of his right of lien or stoppage in transit.
(2) Where the goods are of a perishable nature, or where the unpaid seller
who has exercised his right of lien or stoppage in transit gives notice to
the buyer of his intention to re-sell, the unpaid
seller may, if the buyer does not within a reasonable time pay or tender the
price, re-sell the goods within a reasonable time and recover from the original
buyer damages for any loss occasioned by his
breach of contract, but the buyer shall not be entitled to any profit which
may occur on the re-sale. If such notice is not given, the unpaid seller shall
not be entitled to recover such damages and the
buyer shall be entitled to the profit, if any, on the re-sale.
(3) Where in unpaid seller who has exercised his right of lien or stoppage
in transit re-sells the goods, the buyer acquires a good title thereto as
against the original buyer, notwithstanding that no
notice of the re-sale has been given to the original buyer.
(4) Where the seller expressly reserves a right of re-sale in case the buyer
should make default, and, on the buyer making default, re-sells the goods,
the original contract of sale is thereby rescinded, but without prejudice
to any claim which the seller may have for damages.
CHAPTER VI
SUITS FOR BREACH OF THE CONTRACT
55. Suit of price.--- (1) Where under a contract of sale the property in the
goods has passed to the buyer and the buyer wrongfully neglects or refuses
to pay for the goods according to the terms of the contract, the seller may
sue him for the price of the goods.
(2) Where under a contract of sale the price is payable on a day certain irrespective
of delivery and the buyer wrongfully neglects or refuses to pay such price,
the seller may sue him for the price
although the property in the goods has not passed and the goods have not been
appropriated to the contract.
56. Damages for non-acceptance.--- Where the buyer wrongfully neglects or
refuses to accept and pay for the goods, the seller may sue him for damages
for non-acceptance.
57. Damages for non-delivery.--- Where the seller wrongfully neglects or refuses
to deliver the goods to the buyer, the buyer, may sue the seller for damages
for non-delivery.
58. Specific performance.---Subject to the provisions of Chapter II of the
Specific Relief Act, 1877, in any suit for breach of contract to deliver specific
or ascertained goods, the Court may, if it thinks fit, on the applications
of the plaintiff, by its decree direct that the contract shall be performed
specifically, without giving the defendant the option of retaining the goods
on payment of damages. The decree may be unconditional, or upon such terms
and conditions as to damages, payment of the price or otherwise, as the Court
may deem just, and the application of the plaintiff may be made at any time
before the decree.
59. Remedy for breach of warranty.--- (1) Where there is a breach of warranty
by the seller, or where the buyer elects or is compelled to treat any breach
of a condition on the part of the seller as a breach of warranty, the buyer
is not by reason only or such breach of warranty entitled to reject the goods;
but he may---
(a) set up against the seller the breach of warranty in diminution or extinction
of the price; or
(b) sue the seller for damages for breach of warranty
(2) The fact that a buyer has set up a breach of warranty in diminution or
extinction of the price does not prevent him from suing for the same breach
of warranty if he has suffered further damage.
60. Repudiation or contract before due data--- Where either party to a contract
of sale repudiates the contract before the date of delivery, the other may
either treat the contract as subsisting and wait till the date of delivery,
or he may treat the contract as rescinded and
sue for damages for the breach.
61. Interest by way of damages and special damages.--- (1) Nothing in this
Act shall affect the right of the seller or the buyer to recover interest
or special damages in any case where by law interest or special damages may
be recoverable, or to recover the money paid where the consideration for the
payment of it has failed.
(2) In the absence of a contact to the contract, the Court may award interest
at such rate as it thinks fit on the amount of the price---
(a) to the seller in a suit by him for the amount of the price---from the
date of the tender of the goods or from the date on which the price was payable;
(b) to the buyer in a suit by him for the refund of the price in case of a
breach of the contract on the part of the seller---from the date on which
the payment was made.
CHAPTER VII
MISCELLANEOUS
62. Exclusion of implied terms and conditions.---Where any right, duty or
liability would arise under a contract of sale by implication of law, it may
be negatived or varied by express agreement or by the course of dealing between
the parties, or by usage, if the usage is such as to bind both parties to
the contract.
63. Reasonable time a question of fact.--- Where in this Act any reference
is made to a reasonable time, the question what is a reasonable time is a
question of fact.
64. Auction sale.--- In the case of a sale by auction---
(1) where goods are put up for sale in lots, each lot is prima facie deemed
to be the subject of a separate contract of sale;
(2) the sale is complete when the auctioneer announces its completion by the
fail of the hammer or in other customary manner; and, until such announcement
is made, any bidder may retract his bid;
(3) a right to bid may be reserved expressly by or on behalf of the seller
and, where such right is expressly so reserved, but not otherwise, the seller
or any one person on his behalf may, subject to the provisions hereinafter
contained, bid at the auction;
(4) where the sale is not notified to be subject to a right to bid on behalf
of the seller, it shall not be lawful for the seller to bid himself or to
employ any parson to bid at such sale, or for the auctioneer knowingly to
take any bid from the seller or any such person; and any sale contravening
this rule may be treated as fraudulent by the buyer;
(5) the sale may be notified to be subject to a reserved or upset price;
(6) if the seller makes use of pretended bidding to raise the price, the sale
is voidable at the option of the buyer.
12[64-A. In contracts of sale amount of increased or decreased duty to be
added or deducted.---In the event of any duty of customs or excise 13[or tax]
on any goods being imposed, increased, decreased or remitted after the making
of any contract for the sale of such goods without stipulation 14[as to the
payment of duty or tax where duty or tax] was not chargeable at the time of
the making of the contract, or for the sale of such goods 15[duty paid or
tax paid where duty or tax] was chargeable at that time,---
(a) if such imposition or increase so takes effect that 16[the duty or tax
or increased duty or tax] as the case may be, or any part thereof, is paid,
the seller may add so much to the contract price as will be equivalent to
the amount paid 17[in respect of such duty or tax or increase of duty or tax]
and he shall be entitled to be paid and to sue for and recover such addition,
and
12. S.64-A ins. by the Indian Sale of Goods (Amendment) Act, 1940 (41 of 1940),
S.2.
13. Ins. by the Sale of Goods (Amdt.) Act, 1956 (5 of 1956), S.2 (with effect
from the 11th April, 1956).
14. Subs. ibid. (with effect from the 11th April, 1956) for "as to the
payment of duty where duty".
15. Subs. by the Sale of Goods (Amendment) Act, 1956), S.2 (with effect from
the 11th April, 1956), for "duty paid where duty".
16. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956) (with effect
from the 11th April, 1956), for "the duty or increased duty".
(b) if such decrease or remission so takes effect that the decreased duty
18[or tax] only or no duty 19[or tax], as the case may be, is paid, the buyer
may deduct so much from the contract price as will be equivalent to the decrease
of duty 20[or tax] or remitted duty 21[or tax], and he shall not be liable
to pay, or be sued for or in respect of, such deduction.]
22[Explanation.---The word "tax" in this section means the tax payable
under the Sales Tax Act, 1951].
65. [Repeal].---Rep. by the Repealing Act, 1938 (I of 1938), S.2. and Schedule.
66. Savings.---(1) Nothing in this Act or in any repeal effected thereby shall
affect or be deemed to affect---
(a) any right, title, interest, obligation or liability already acquired,
accrued or incurred before the commencement of this Act, or
(b) any legal proceedings or remedy in respect of any such right, title, interest,
obligation or liability, or
(c) anything done or suffered before the commencement of this Act, or
(d) any enactment relating to the sale of goods which is not expressly repealed
by this Act, or
(e) any rule of law not inconsistent with this Act.
(2) The rules of insolvency relating to contracts of sale do not apply to
any transaction in the form of a contract of sale which is intended to operate
by way of mortgage, pledge, charge or other security.
17. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956), (with effect
from the 11th April, 1956), for "in respect of such duty or increase
of duty".
18. Ins. ibid. (with effect for the 11th April, 1956).
19. Ins. ibid. (with effect for the 11th April, 1956).
20. Ins. ibid. (with effect for the 11th April, 1956).
21. Ins. ibid. (with effect for the 11th April, 1956).
22. Explanation added ibid. (with effect from the 11th April, 1956).
entries relating to firms are to be made therein, and the mode in which such
entries are to be amended or notes made therein.
(d) regulating the procedure of the Registrar when disputes arise;
(e) regulating the filing of documents received by the Registrar;
(f)prescribing conditions for the inspection of original documents;
(g) regulating the grant of copies;
(h) regulating the elimination of registers and documents;
(i) providing for the maintenance and form of an index to the Register of
Firms; and
(j) generally, to carry out the purposes of this Chapter.
(3) All rules made under this section shall be subject to the conditions of
previous publications:
19[Provided further that the fees payable for any service desired on the same
day on which an application for the same is made may be double the aforesaid
maximum fees.]
CHAPTER VIII
SUPPLEMENTAL
67. Mode of giving public notice.--- A public notice under this Act is given---
(a) where it relates to the retirement or expulsion of a partner from a registered
firm, or to the dissolution of a registered firm, or to the election to become
or not to become a partner in a registered firm by a person attaining majority
who was admitted as a minor to the benefits of partnership, by notice to the
Registrar of Firms under section 63, and by publication in the 20[official
Gazette] and in at least one vernacular newspaper circulating in the district
where the firm to which in relates has its place or principal place of business,
and
(b) in any other case, by publication in the 20[official Gazette] and in at
least one vernacular newspaper circulating in the district where the firm
to which it relates has its place or principal place of business.
68. [Repeals.] Rep. by the Repealing Act, 1938 (I of 1938), S.2 and Schedule.
19. Proviso added by Partnership (Amendment) Ordinance (XIX of 1981),
S.3 dated 18-5-1981
20. Substituted by A.O., 1937, for "local official Gazette".
69. Savings.--- Nothing in this Act or any repeal effected thereby shall affect
or be deemed to effect---
(a) any right, title, interest, obligation or liability already acquired,
accrued or incurred before the commencement of this Act, or
(b) any legal proceeding or remedy in respect of any such right, title, interest,
obligation or liability, or anything done or suffered before the commencement
of this Act, or
(c) anything done or suffered before the commencement of this Act, or
(d) any enactment relating to partnership not expressly repealed by this Act,
or
(e) any rule of insolvency relating to partnership, or
(f) any rule of law not inconsistent with this Act.
21[SCHEDULE I]
MAXIMUM FEES
[See subsection (1) of section 71]
| Document or act in respect of which the fee is payable | Maximum Fees |
| Rs | |
| Statement under section 58 | 50 |
| Statement under section 60 | 20 |
| Intimation under section 61 | 20 |
| Intimation under section 62 | 20 |
| Notice under section 63 | 20 |
| Application under section 64 | 20 |
| Inspection of the Register of Firms under subsection (1) of section 66 | 5 |
| Inspection of documents relating to a firm under subsection (2) of section 66 or any other document in the custody of theRegistrar of Firms | 5 |
| Copies from the Register of Firms | Rs. 2 for each 100 words or part thereof.] |
SCHEDULE II.---[ENACTMENTS REPEALED].
Rep. by the Repealing Act,
1938 (1 of 1938), section 2 and Schedule.