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1968 (6) TMI 54

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..... ndows, etc. The opponent received a letter from an architect on behalf of a customer dated 28th December, 1963, in the following terms: "You manufacture cement jalis according to designs. Please come with quotations for manufacturing and fitting jalis in the galas (apertures) after seeing our design." The said contract was executed in the following manner. The design was selected by the customer from an album and after the selection of the design, the opponent-firm prepared rough cement blocks on rods. These materials were then taken to the site and they were fitted in the gala or aperture and fastened in the course of the building operation. When the work was completed it resulted in the jali of the required design. The opponent-firm t .....

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..... . The trustees claimed them on the ground that property therein had passed to them when once they had approved the same. Lord Abinger, C.B., negativing this contention observed. "..... this is not a contract for the sale and purchase of goods as movable chattels; it is a contract to make up materials, and to fix them; and until they are fixed, by the nature of the contract, the property will not pass." Parke, B., observed: "..... but in this case, there is no contract at all with respect to these particular chattels, it is merely parcel of a large contract. The contract is, that the bankrupt shall build a house; that he shall make, amongst other things, window-frames for the house, and fix them in the house, subject to the approbation .....

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..... eement while in the case of a building contract, it was one entire and indivisible one in which there was no sale of goods. In State of Gujarat v. Kailash Engineering Co. (Pvt.) Ltd.[1967] 19 S.T.C. 13., a question had arisen before the Supreme Court in the case of the engineering concern which constructed three coaches over the chassis supplied by the Western Railway Administration under a contract with the latter and received money therefor. It was provided in the contract that as soon as the plant and materials were brought on the site where the coaches were to be constructed, the ownership in them would vest in the railway. The coach bodies were not separately described as units or components to be supplied by the respondent to the rail .....

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..... even of these materials. The order was clearly an order to fill up the gap by constructing the jali, prepared on the site as per the approved design. Thus, the contract never involved any element of sale of a prepared cement jali or of the raw materials as such. The contract was clearly one for adopting or suitably filling up the gap in the building or apertures only as per the order given and as per the specified design the jali had to be constructed in that gap. The order was clearly one for a job work contract and the construction as per the specified design and it did not involve any element of sale of a prepared jali or of raw materials. It was clearly one and indivisible works contract in which both the tests as evolved by their Lords .....

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