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1951 (11) TMI 12

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..... a there are Depots at Indore and Naisirabad. They are in charge of Depot Keepers. They are not authorised to sell any tea to anybody except under the orders of the Nagpur Office. In the Central India we have got our (selling) agent appointed by our Nagpur Office. These agents place their orders for the purchases of tea either with our travelling (canvassing) agents or directly to the Nagpur Office. On receipt of the orders from our agents in the Central India, we direct the godown keepers to deliver the goods to the (selling) agents. The railway receipt and the despatching report are sent to us. The bills are prepared in our office and the bills along with the railway receipts are sent to the (selling) agents (buyers) concerned on realisati .....

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..... o dispute about the correctness of the facts stated by the applicants' representative in describing the technique of supply Briefly, the customers in Central India place their orders with the applicants' office at Nagpur either direct or through the latter's travel- ling or canvassing agents. The goods to be supplied are situated at no time either at Nagpur or at any other place in the Province. They are stocked at the depots or godowns at certain places in Central India itself and the stocks at these depots or godowns are replenished, as and when necessary, direct from the Calcutta godowns of the applicants. On receipt of an order from a customer in Central India, the Nagpur office instructs the person in charge of one of the depots or god .....

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..... ly described in paragraphs 1 and 2 can be con- sidered to be one for specific or ascertained goods. Admittedly, the order received and accepted at Nagpur is "for so many cases of specified brands of tea. " At that stage, the contract obviously is not one for specific or ascertained goods. Thereafter the Nagpur office passes on the order to a depot in Central India, which appropriates the goods (which are certainly in a deliverable state) to the contract and hands them over to the carrier (namely the Railway Company) for the pur- pose of transmission to the buyer. At this second stage, the goods have undoubtedly become specific or ascertained, but the appropriation is not unconditional, nor has the delivery to the carrier been made, without .....

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..... customer takes delivery of the receipt after making payment for it. The reasons should be clear; when the railway receipt is sent through a bank or by V.P.P. and where the payment for the goods has yet to be received, the right of disposal in the goods delivered to the carrier ceases to be reserved and the appropriation of goods to the contract made at the second stage (vide paragraph 4) becomes unconditional only when the customer takes delivery of the receipt, making payment for it. From what has been stated in paragraphs 4 and 5 above, it seems to me that the case is not really one governed by Section 19 of the Sale of Goods Act in the sense suggested, but that it involves a variant of the circumstances described in Section 23. Also, .....

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