STATE OF GUJARAT vs MANILAL JOITARAM & CO.

The Supreme Court held that under Section 18(1) of the Forward Contracts (Regulation) Act, 1952, non-transferable specific delivery contracts must involve actual delivery; however, the proviso makes it illegal for an unrecognised association to arrange contracts without actual delivery. The Court found that the conduct of the Ghee and Tel Brokers Association violated Section 20(1)(b) of the Act, leading to the conviction of its members. The High Court's acquittal was overturned, affirming the applicability of the Act's provisions in this context.