SITA RAM JHUNJHUNAWALA vs BOMBAY BULLION ASSOCIATION LTD. & ORS.

The Supreme Court addressed the interpretation of bye-law 137-B under the Forward Contracts Control Act (Bom. Act 64 of 1947), determining that a cheque drawn on an account with the Clearing House, which was credited to the Association after verification of sufficient funds, constitutes a valid payment, even if not certified as good for payment. The Court held that such payments are equivalent to cash payments, thereby satisfying the bye-law requirements. The appeal was dismissed, affirming the High Court's decision.