The sale of goods act
Shumaila Altaf
(Querist) 29 October 2013
This query is : Resolved
greetings!
According to section 2(7) of the sale of goods act, goods are defined as
" goods" means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;
do gold coins/sovereigns come under this defintion, since it excludes money.
thank you.
Shumaila Altaf
(Querist) 29 October 2013
no sir this is not a an academic query. the facts are that Mr.A has filed a complaint against my client,who is a jeweller, before the consumer forum. the facts are that in 2006 Mr.A paid money to my client for purchase of 50 gold coins/sovereigns. due to some reasons my client could not provide the sovereigns on time. it was only in 2008 that my client provided 30 gold coins to Mr.A and returned the excess money. Mr.A admits receiving 30 gold coins but says that remaining was paid back only in 2011 when he filed complaint against my client. so i want to know, whether it is barred by limitation and does gold come within definition of goods and moreover can this cause of action be agitated before the consumer forum or the civil court is the propery remedy. thanks
V R SHROFF
(Expert) 29 October 2013
Academic query by STUDENT.
R U ADVOCATE??
ur client's case????
Shumaila Altaf
(Querist) 29 October 2013
I'm an advocate, passed only last year. this is my first consumer case.
V R SHROFF
(Expert) 29 October 2013
Pl change your Profile.
Vital fact is, does your client purchase coin for his own use? or for resale/ commercial activity.
If commercial/ or resale[ most probably] u hv to go to civil court.
Any doc proves the cause of action aroused within last 3 yrs, it is within Limitation period , to file suit.
consumer is only 2 yrs, so out of limitation, + being commercial deal, , it cannot go to cons forum.
Raj Kumar Makkad
(Expert) 29 October 2013
The limitation to agitate inn consumer fora is 2 years from the date of accrual of cause of action.
In the given case, the jurisdiction of consumer fora is barred as the matter is regarding commercial transaction of money which do not come within the ambit of consumer dispute.
In view of above, the complaint is liable to be dismissed at the initial stage on both counts. Move an application to that regard.
prabhakar singh
(Expert) 29 October 2013
Q."and moreover can this cause of action be agitated before the consumer forum "
THE ANSWER IS A BIG NO!
BECAUSE A a jeweller IS A MERCHANT AND NOT THE CONSUMER.
Shumaila Altaf
(Querist) 29 October 2013
Thank you all. But Prabhakar sir, Mr.A is not a jeweller. my client is the jewellery and Mr.A wanted to purchase coins for personal use as an asset.
prabhakar singh
(Expert) 29 October 2013
wHAT PROOF YOUR CLIENT HAS THAT HE RETURNED
THE BALANCE only in 2008 ?
iF NOTHING IN WRITING THEN EVIDENCE AT EITHER SIDE AND DISCRETION OF COURT.
prabhakar singh
(Expert) 29 October 2013
FISHING US IN LANGUAGE MAY NOT BE OF ANY USE?
prabhakar singh
(Expert) 29 October 2013
HOWEVER ONE SILVERLINING IS THAT CURRENCY IN ANY FORM WOULD NOT BE CALLED GOODS.
Raj Kumar Makkad
(Expert) 29 October 2013
Currency was traded in the given case which shall not form the purchase of goods and moreover the period for recovery is 3 years from the date of loan which has already ended even if a civil suit is filed for recovery of money.
Shumaila Altaf
(Querist) 30 October 2013
haha,fishing:) I really respect all of you seniors sincerely and not trying to be genteel. Sir, I tried to search the whole web to get find whether Gold is a form of currency and cannot come under the definition of goods under the Sale of goods act, but couldn't find one. if only you would generous enough to help. The presiding officer is not convinced that gold coins are money.
Anirudh
(Expert) 30 October 2013
Gold is not money. Gold is goods.
It is not clear whether your client got any acknowledgement while delivering the gold coins to A, or whether any Invoice was issued by your client at the time of giving the goods.
If your client has proof of handing over goods in 2008, then the limitation would be reckoned from the date of such delivery.
Shumaila Altaf
(Querist) 30 October 2013
yes sir, even Mr. A has admitted receiving 30 gold coins in 2008.
prabhakar singh
(Expert) 30 October 2013
Only coins put in system for exchange by RBI or GOVT. of India,and not other coins would be called money.If A proves his allegations
that balance was received by him in 2011 and not in 2008 when 30 coins were delivered,obviously the complaint filed in 2013 is well with in limitation.