https://www.taxtmi.com/caselaws?id=111725 A buyback covenant in a share purchase agreement was treated as an agreement for future repurchase of shares, not a permissible spot delivery contract. The court applied the Securities Contracts (Regulation) Act, 1956 and held that only spot delivery contracts are permitted; the contingent form of the arrangement did not validate it. A prior Division Bench ruling under the Bombay Securities Contracts Control Act, 1925 was distinguished because its definition of ready delivery contract was materially different. The claim was also held unsuitable for a summary suit under Order 37 of the Code of Civil Procedure, and unconditional leave to defend was granted. en-us Wed, 19 Oct 2005 00:00:00 +0530 Tue, 24 Apr 2012 18:36:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111725 A buyback covenant in a share purchase agreement was treated as an agreement for future repurchase of shares, not a permissible spot delivery contract. The court applied the Securities Contracts (Regulation) Act, 1956 and held that only spot delivery contracts are permitted; the contingent form of the arrangement did not validate it. A prior Division Bench ruling under the Bombay Securities Contracts Control Act, 1925 was distinguished because its definition of ready delivery contract was materially different. The claim was also held unsuitable for a summary suit under Order 37 of the Code of Civil Procedure, and unconditional leave to defend was granted. Case-Laws Companies Law Wed, 19 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111725