Deemed closure of forward contracts: government-fixed rates determine settlement, and sellers and buyers are excused from delivery obligations. When the government issues a notification, forward contracts in the specified goods entered on or before the notification date and remaining to be performed that do not conform with the notification shall be deemed to be closed out at rates fixed by the Central Government; differences arising are payable on that basis and the seller and buyer are not bound to deliver or take delivery.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deemed closure of forward contracts: government-fixed rates determine settlement, and sellers and buyers are excused from delivery obligations.
When the government issues a notification, forward contracts in the specified goods entered on or before the notification date and remaining to be performed that do not conform with the notification shall be deemed to be closed out at rates fixed by the Central Government; differences arising are payable on that basis and the seller and buyer are not bound to deliver or take delivery.
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