HEMRAJ KESHAVJI vs SHAH HARIDAS JETHABHAI

The Supreme Court ruled that contracts for the delivery of goods at a future date, even if for a specific price and quality, are not classified as forward contracts under the Saurashtra Groundnut and Groundnut Products (Forward Contracts Prohibition) Order, 1949, unless explicitly stated as transferable. The absence of a non-transferability clause does not automatically imply transferability; rather, the interpretation of the contract's language and surrounding circumstances must be considered. The Court held that the contracts in question were not forward contracts and thus not prohibited by the Order, affirming the lower court's decision.