BADRI PRASAD vs STATE OF MADHYA PRADESH AND ANOTHER

The Supreme Court held that under Section 20 of the Sale of Goods Act, 1930, the property in the timber passed to the 2nd respondent upon the contract's formation on 24th December 1956, despite the subsequent signing of the formal contract by the Chief Conservator after a fire destroyed the timber. The Court found that possession was given on 5th February 1957, and there was no condition in the contract delaying possession until all instalments were paid. Consequently, the appellant's liability for the remaining instalments was upheld, and the High Court's dismissal of the appellant's suit was affirmed.