RAGHUBAR DAYAL JAI PRAKASH vs THE UNION OF INDIA AND OTHERS

The Supreme Court upheld the constitutional validity of the Forward Contracts (Regulation) Act, 1952, specifically sections 5, 6, 10, and 15, ruling that these provisions do not infringe Articles 14 and 19(1)(c) of the Constitution. The Court found that the Act aims to regulate forward transactions to prevent undesirable speculation while promoting legitimate trade. The petitioner’s forward contracts became illegal due to a government notification under section 15, which was deemed valid and enforceable, leading to the closure of outstanding contracts as per section 16.