Volume and Value - Indian Laws - General

Volume and Value The word volume when used in scientific contexts would normally mean physical dimensions on three coordinate axes; in business and industrial parlance it is also used to reflect the total quantity of some physical produce. The word value , on the other hand, implicates the meaning of both intrinsic capacity to provide some utility, and also the value derived in the context of exchange in the market place. The word value and the phrase total value when used in the context of commerce would normally only reflect the monetized sum that is derived by multiplying the number of units of a physical product with the sale price. This distinction is clearly stated in P. Ramanatha Aiyar s Advanced Law Lexicon (3rd Ed. 2005) as follows: Volume: ...Term often confused with turnover, although in some instances they may be used to mean the same thing. Strictly, volume is the number of units traded, whereas turnover refers to the value of the units traded. On the commodities market, however, volume refers to the quantity of soft commodities traded, and turnover refers to the tonnage of metals traded over a particular period of time. .... Number of units traded (as opposed to turnover, which is the value of the units traded, although the terms are sometimes interchanged). (International Accounting) Whereas, Value is said to be : The expression VALUE in relation to any goods shall be deemed to be the wholesale cash price for which such goods of the like kind and quality are sold or are capable of being sold for delivery at the place of manufacture and at the time of their removal therefrom...... Also, according to Black s Law Dictionary, Value is said to be: 1. The significance, desirability or utility of something. (as a noun). 2. The monetary worth or price of something; the amount of goods, services or money that something will command in an exchange. 2. The significance, desirability, or utility of something. 3. Sufficient contractual consideration. (Black, 7th Edn. 1999) RELIANCE NATURAL RESOURCES LTD. VERSUS RELIANCE INDUSTRIES LTD. - 2010 (5) TMI 732 - SUPREME COURT