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Vara Prasaad (Sr Manager - F&A)     26 June 2016

Interpretation of clause

“Once the payment for supply of rails and sleepers has been made as above, these shall deem to be the property of DFCC and Contractor shall not remove these without prior approval of the Engineer and take due care of the same against theft/damage etc., at no extra cost.”


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Vara Prasaad (Sr Manager - F&A)     26 June 2016

1) The interpretation of the above clausew.r.t. Section 23 read with Section 19 of the Sale of Goods Act, it implies that the property in goods was transyferred in the state of destination and is a local sale.

2) if the above clause is interpreted w.r.t. Section 3(a) of the CST Act, it gives a meaning exactly the opposite, i.e., contract is occasioning the movement of goods & are covered under Section 3(a) of teh CST Act & hence is an interstate sale.

Questions:

1. If a dispute arises, which interpretation sustains.

2. What is interpreted by "Shall DEem to be", as per law.

3. Please provide any case laws, in this respect.

 


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