TaxTMI 
TaxTMI 
1904 (4) TMI 1
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....e companion suit No. 696 of 1901 are the same and the defendants are Motiram Jadhawji and Tokersey Jadhawji, trading in partnership under the style of Motiram Jadhawji. 3. The two suits arise out of transactions initiated by instructions to David Sassoon and Co. to purchase American cotton as follows: on the 15th March, 1901, instructions were given by Motiram Jadhawji to purchase 400 bales, and by Tokersey Jadhawji to purchase 100 bales for delivery in July-August; on the 26th March instructions were given by Motiram Jadhawji to purchase 500 bales for delivery in August-September; and on 23rd April instructions were given by Motiram Jadhawji to purchase 1,500 bales and by Tokersey Jadhawji to purchase 500 bales for delivery in August: 4. The course of dealing throughout has been the same in respect of each order, and it will suffice to state the history of one of these transactions, as that will describe what was done in the others. 5. On the 15th of March, 1901, the Bombay Branch of David Sassoon and Co. cabled their London Branch to buy 500 bales of American cotton July-August delivery. This was done in pursuance of instructions from Motiram Jadhawji to buy 400 bales, a....
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....tton Futures as per As. 3, Contract Form of the Liverpool Cotton Association, Limited, and subject to its rules and regulations:-- 10. At the end of April there was a fall in prices, and this continued with the result that Messrs. David Sassoon and Co. pressed the Bombay purchasers to deposit a sufficient amount to cover the deficiency in price. Accordingly on the 13th of May, 1901, there was deposited with the plaintiff firm by way of equitable mortgage a title deed to cover this deficiency, and on the 26th of July a sum of Rs. 7,000 was deposited as further security. 11. On the 8th of August, 1901, the plaintiff firm wrote to Tokersey Jadhawji as follows:-- Dear Sir, Owing to the continued heavy decline in American cotton please take note that unless you send us a further deposit of Rs. 5,000 by 1 o'clock to-morrow (Friday) we shall wire instructions to London to sell off your open contracts with us. Begging immediate attention. P. pro David Sassoon & Co., (Sd.) Henry Solomon. 12. On the 9th of August, 1901, a telegram was sent by the plaintiffs' Bombay B....
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.... plaintiffs in England that were by way of wager, and with this suggestion I will first deal. 21. Now one of the agreements in England is evidenced by the delivery contract of the 15th March, 1901, Ex. S.J.B./2 which I have read, and which may be taken as typical of all the delivery contracts connected with the transactions in suit. 22. It will be noticed that it incorporates the printed rules of the Liverpool Cotton Association; Limited, find it has not been suggested before us in argument that those rules as they stand point to an agreement by way of wager. 23. At the same time the evidence all points the other way. Thus it has been sworn that the contract is in the ordinary form, that under such a contract delivery is ordinarily demanded and given, that the purchases made in March and April were ordinary purchases for future delivery, and that they were made under contracts in the ordinary form for future delivery, in the form in which cotton is ordinarily bought and sold for future delivery, and in the form in which delivery is demanded and given. This evidence has not been impugned and I think we should accept it as trustworthy. 24. But then it is argued that, when....
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.... cent would be speculative I am speaking of American futures. I mean 90 per cent is bought and sold either with the intention of delivery or as cover on some transaction. When we buy cotton as cover it is no intention on part of the purchaser that he will take delivery. If under exceptional circumstances he changed his mind and wanted delivery he would get it. When I say he can always get delivery that is supposing he is dealing with a sound man. That rests on that (sic) if my seller is solvent he can always got delivery except in covers in American futures. As a rule there is an enormous deal. More American cotton is sold than is grown and a great deal more is sold in Liverpool than comes here. I can't give statistics. So if in any one month all the people who had purchased ahead for delivery in that month were not to resell and were to ask for delivery, they could not got it because there would not be enough cotton to go round. Of 90 per cent bona fide delivery about ½ are covering purchases and ½ would be purchases for delivery. All what I have said about covering purchases relates to my constituents' business as well as mine. I make the covering purchases ....