Specific Goods in A Deliverable State (Sec.20)

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL
SECOND TRIMESTER
CONTRACT LAW- 2 PROJECT
SPECIFIC GOODS IN A DELIVERABLE STATE

SALE OF GOODS ACT,1930( SECTION-20 )
SUBMITTED BY: SUBMITTED TO:
RADHA CHARPOTA PROF. NEHA SHARMA MAM
2019 BALLB[HONS] 30
CERTIFICATE
This is to certify that the Project titled – ‘Specific goods in a deliverable state’
has been prepared and submitted byRadhaCharpota ,who is currently
pursuing her BA LLB .(Hons.)at National Law Institute University,Bhopal in
fulfilment of Contract Law -2 course .It is also certified this is original research
report and this projecthas not been submitted to any other university ,nor
published in any journal.
Date:
Signature of the student:
Signature of the research supervisor:

Acknowledgement
This project has been made possible by the unconditional support of many people, I would
like toacknowledge and extend my heartfelt gratitude toProf. Neha Sharma for guiding me
throughout the development of this project into a coherent whole by providing helpful
insights and sharing their brilliant expertise. I, also would like to thank the members of the
library staff and computer section for the cooperation in making available the books and
accessing the internet even during their free time. I am deeply indebted to my parents, seniors
and friends for all the moral support and encouragement.
RadhaCharpota
2019 BALLB [HONS] 30

Table of Contents
INTRODUCTION:....................................................................................................................................5
DEFINATION............................................................................................................................................6
SPECIFIC GOODS IN A DELIVERABLE STATE............................................................................................7
CASES RELATED TO SECTION 2..............................................................................................................8
CONCLUSION:........................................................................................................................................9
BIBLIOGRAPHY:......................................................................................................................................9
STATEMENT OF PROBLEM:
.
OBJECTIVES OF STUDY:
HYPOTHESIS:
METHOD OF STUDY:
This project is largely based on the doctrinal method of data collection.
REVIEW OF LITERATURE:
INTRODUCTION:
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.
Section 20 of the sale of goods act, 1930 and argued that the sale should be
unconditional. we do not find any force in the arguments of the learned
departmental representative. the provisions of
section 20 of sale of goods act are moreover in favour of the assessee
company. section 20 of the sale of goods act, 1930 read as follows:
'section 20 specific goods in a deliverable state-where there is an unconditional
control for the sale of specific goods is 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 .....
assessee-company cannot be doubted. therefore, the shares of nocil owned by
the assessee were in a deliverable state. therefore, in the present case, there was
an unconditional contract for sale of specific shares, which were
in deliverable state, therefore, the shares as per the provisions
of section 20 of sale of goods act, 1930, were passed on to m/s. arvi associates
as soon as there was contract between the assessee
DEFINITIONS (as given in sale of goods act, 1930)
GOODS:
‘Goods’ is defined as per Section 2 (7) of the ‘Act’ as. “Every kind of movable
property other than actionable claims and money; and includes stock and shares,
growing crops, grass, and things attached to or forming part of the land which
are agreed to be severed before sale or under the contract of sale.”
SPECIFIC GOODS:
As per Section 2(14) of the ‘ACT’ ,“specific goods” means goods identified
and agreed upon at the time a contract of sale is made.
DELIVERABLE STATE:
Under section 2(3) of Sale of good Act,1930 ; goods are said to be in a
“deliverable state” when they are in such state that the buyer would under the
contract be bound to take delivery of them
CASES RELATED TO SECTION 20 :

O.P. Bhartia Vs. Canara Bank and ors.:
The facts in brief are these. Canara Bank (hereinafter referred to asthe Bank)
filed suit No. 1793/84 on October 31, 1984 against M/s Fibre Processors Pvt.
Ltd. (hereinafter referred to as the Company) and others for the recovery of a
sum of Rs. 11, 98, 449.72 together with interest etc. The Bank filed yet another
suit on October 31, 1984, being suit No. 1810/84 for the recovery of a sum of
Rs 49,32,803.61 with interest. It was alleged in this suit that the Company bad
for the grant of loaning facilities and to secure repayment of the loans had
executed several documents and hypothecated the plant and machinery of the
factory of the Company, raw materials and finished goods etc. In favor of the
Bank and the Bank is entitled to recover its dues from the hypothecated plant,
machinery, raw materials and finished goods etc. The Bank filed on November
7, 1984 another suit No. 1754/84 for the recovery of a sum of Rs. 6,58,907.85
together with interest etc. Along with suit No. 1793/84, an application, being
1.A. 2596/85 under order 40 Rule 1 of the Code of Civil Procedure for
appointment of a Receiver was made. The power sought for the Receiver was to
take possession of all the plant, machinery, tools, accessories, raw materials,
goods in process, stores and spares, finished goods and other items whatsoever
and for a direction to the Receiver to sell the plant, machinery, raw materials
and finished goods and other items lying in the factory premises of the
Company.
The last submission is that the officers of the Bank and defendants other than
the Company were in collusion with each other and they were acting to seek
order for disposal of the plant, machinery and other goods of the Company by
playing fraud. Apart from a bare allegation at the Bar, there is no material on
the record of the perpetuation of any fraud. The defendants other than the
Company are guarantors of the Company for payment of the loans and other
dues and naturally they would be keen that the liability is discharged out of the
securities held by the bank. Viewed from this angle, they are consenting parties
to the sale of the hypothecated plant, machinery and other assets of the
Company.
For the above reasons the appeals are dismissed with no order as to costs.
CONCLUSION:
BIBLIOGRAPHY:
Books :
Net sources :
https://www.legalcrystal.com › search
Sale of Goods Act Section 20 - Judgments | LegalCrystal

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NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL

CONTRACT LAW- 2 PROJECT

SPECIFIC GOODS IN A DELIVERABLE STATE

SUBMITTED BY: SUBMITTED TO:

RADHA CHARPOTA PROF. NEHA SHARMA MAM

Signature of the student:

Signature of the research supervisor:

2019 BALLB [HONS] 30

CASES RELATED TO SECTION 20 :

Sale of Goods Act Section 20 - Judgments | LegalCrystal

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