Supreme Court of India · 1960-09-13
THE BULLION AND GRAIN EXCHANGE LTD. AND OTHERS vs THE STATE OF PUNJAB
- Citation / case number
- SC 1955/1
- Court
- Supreme Court of India
- Petitioner
- THE BULLION AND GRAIN EXCHANGE LTD. AND OTHERS
- Respondent
- THE STATE OF PUNJAB
- Author
- DAS, S.K.,HIDAYATULLAH, M.,GUPTA, K.C. DAS,SHAHC.,AYYANGAR, N. RAJAGOPALA
- Bench
- DAS, S.K.,HIDAYATULLAH, M.,GUPTA, K.C. DAS,SHAH, J.C.,AYYANGAR, N. RAJAGOPALA
Judgment text excerpt
The Supreme Court ruled that the Punjab Forward Contracts Tax Act, 1951, is ultra vires the State Legislature's powers as it does not fall within Entry 62 of List II of the Seventh Schedule of the Constitution. The definition of 'forward contract' in the Act does not encompass all necessary elements of a wagering contract, thus invalidating the Act. The Court held that even if parts of the Act could be valid, they are so minimal that the entire Act must be declared invalid.