{"id":5386,"date":"2025-04-13T17:49:45","date_gmt":"2025-04-13T12:19:45","guid":{"rendered":"https:\/\/fawyerz.in\/judgments\/?p=5386"},"modified":"2025-04-20T14:38:56","modified_gmt":"2025-04-20T09:08:56","slug":"bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary","status":"publish","type":"post","link":"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/","title":{"rendered":"Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co. 1965 (Case Summary)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5386\" class=\"elementor elementor-5386\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a833440 elementor-section-full_width elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"a833440\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2c95d39\" data-id=\"2c95d39\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4385da4b elementor-widget elementor-widget-heading\" data-id=\"4385da4b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co. 1965 (Case Summary)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-caa887e elementor-widget elementor-widget-image\" data-id=\"caa887e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1536\" height=\"864\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-1536x864.png\" class=\"attachment-1536x1536 size-1536x1536 wp-image-5387\" alt=\"Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co.\" srcset=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-1536x864.png 1536w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-300x169.png 300w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-1024x576.png 1024w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-150x84.png 150w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10-768x432.png 768w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Fawyerz-10.png 1920w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29677594 elementor-grid-0 elementor-widget elementor-widget-wpr-sharing-buttons\" data-id=\"29677594\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"wpr-sharing-buttons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"wpr-sharing-buttons elementor-grid wpr-sharing-official wpr-sharing-label-off wpr-sharing-label-tr\"><div class=\"elementor-grid-item\"><a href=\"https:\/\/www.facebook.com\/sharer.php?u=https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/\" class=\"wpr-sharing-icon wpr-sharing-facebook-f\" title=\"\" target=\"_blank\"><i class=\"fab fa-facebook-f\"><\/i><\/a><\/div><div class=\"elementor-grid-item\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&url=https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/&title=Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co. 1965 (Case Summary)&summary=This landmark judgment by the Hon\u2019ble Supreme Court of India clarified the legal principles governing contract formation via instantaneous communication methods, such as telephone conversations. The Court distinguished between postal and telephonic communications, &source=https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/\" class=\"wpr-sharing-icon wpr-sharing-linkedin-in\" title=\"\" target=\"_blank\"><i class=\"fab fa-linkedin-in\"><\/i><\/a><\/div><div class=\"elementor-grid-item\"><a href=\"mailto:?subject=Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co. 1965 (Case Summary)&body=https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/\" class=\"wpr-sharing-icon wpr-sharing-envelope\" title=\"\" target=\"_blank\"><i class=\"fas fa-envelope\"><\/i><\/a><\/div><div class=\"elementor-grid-item\"><a href=\"https:\/\/api.whatsapp.com\/send?text=*Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co. 1965 (Case Summary)*%0ahttps:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/\" class=\"wpr-sharing-icon wpr-sharing-whatsapp\" title=\"\" target=\"_blank\"><i class=\"fab fa-whatsapp\"><\/i><\/a><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-76054d3a elementor-widget elementor-widget-text-editor\" data-id=\"76054d3a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This landmark judgment by the Hon\u2019ble Supreme Court of India clarified the legal principles governing contract formation via instantaneous communication methods, such as telephone conversations. The Court distinguished between postal and telephonic communications, establishing that in the case of instantaneous communication, a contract is formed at the place where the acceptance is received by the offeror.<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/#Facts_of_Bhagwandas_Goverdhandas_Kedia_v_Ms_Girdharilal_Parshottamdas_Co\" >Facts of Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/#Issues_framed\" >Issues framed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/#Subordinate_Court_Judgment\" >Subordinate Court Judgment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/#Judgment_of_Bhagwandas_Goverdhandas_Kedia_v_Ms_Girdharilal_Parshottamdas_Co\" >Judgment of Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/fawyerz.in\/judgments\/contract-law\/bhagwandas-goverdhandas-kedia-v-m-s-girdharilal-parshottamdas-co-1965-case-summary\/#Refer_to_the_Judgment_below\" >Refer to the Judgment below<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Facts_of_Bhagwandas_Goverdhandas_Kedia_v_Ms_Girdharilal_Parshottamdas_Co\"><\/span><span style=\"color: #993300;\"><b>Facts of Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co.<br \/><\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">On July 22, 1959, Bhagwandas Goverdhandas Kedia (Appellant), proprietor of Kedia Ginning Factory Oil Mills in Khamgaon, engaged in a telephonic conversation with M\/s Girdharilal Parshottamdas &amp; Co. (Respondent), based in Ahmedabad.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During the call, the Appellant agreed to supply cotton seed cakes to the Respondent.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Respondent accepted the offer during the same telephone conversation.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subsequently, the Appellant failed to deliver the goods as agreed.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Respondent filed a suit in the City Civil Court at Ahmedabad, seeking damages for breach of contract amounting to Rs. 31,150.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Appellant challenged the jurisdiction of the Ahmedabad court, arguing that the contract was concluded in Khamgaon, where the acceptance was spoken.<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Issues_framed\"><\/span><span style=\"color: #993300;\"><b>Issues framed<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the Ahmedabad Civil Court had jurisdiction to entertain the suit?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the context of telephonic communication, whether a contract is formed at the place where the acceptance is spoken or where it is heard?<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Subordinate_Court_Judgment\"><\/span><span style=\"color: #993300;\"><b>Subordinate Court Judgment<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The Trial Court held that the Ahmedabad Civil Court had jurisdiction, reasoning that in the case of instantaneous communication, the contract is formed at the place where the acceptance is received by the offeror.<\/span><\/p><p><span style=\"font-weight: 400;\">The Appellant&#8217;s revision petition was dismissed by the Gujarat High Court. The Appellant then filed a Special Leave Petition before the Hon\u2019ble Supreme Court of India.<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"Judgment_of_Bhagwandas_Goverdhandas_Kedia_v_Ms_Girdharilal_Parshottamdas_Co\"><\/span><span style=\"color: #993300;\"><b>Judgment of <\/b><\/span><span style=\"color: #993300;\"><b>Bhagwandas Goverdhandas Kedia v. M\/s Girdharilal Parshottamdas &amp; Co.<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The Supreme Court examined the provisions under Sections 3 and 4 of the Indian Contract Act, 1872, which govern the communication and completion of proposals and acceptances. It also referred to the case <\/span><i><span style=\"font-weight: 400;\">Entores Ltd. v. Miles Far East Corporation<\/span><\/i><span style=\"font-weight: 400;\"> to analyze the legal position regarding instantaneous communication, such as telephonic conversations.<\/span><\/p><p><span style=\"font-weight: 400;\">The Court distinguished between the postal rule of acceptance, where a contract is deemed to be formed at the place and time the letter of acceptance is posted, and instantaneous communication, where no such presumption applies. In telephone conversations, the contract is complete only when the acceptance is heard and received by the offeror. The reasoning is that both parties must be in mutual agreement at the same time and that agreement can only be said to exist where the offeror hears the acceptance. Therefore, in this case, since the offer was made in Ahmedabad and the acceptance was received there during the phone call, the Court held that the contract was concluded in Ahmedabad, giving jurisdiction to its civil courts.<\/span><\/p><p><span style=\"font-weight: 400;\">The Supreme Court upheld the rulings of the lower courts and affirmed that the Ahmedabad Civil Court had jurisdiction over the matter. The majority concluded that the place where the acceptance is received in the case of telephonic communication is determinative of where the contract is formed, hence, the court held that the contract was validly concluded in Ahmedabad, thereby dismissing the appeal filed by the appellant.<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"Refer_to_the_Judgment_below\"><\/span><span style=\"color: #993300;\"><b>Refer to the Judgment below<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-117b2bf8 elementor-widget elementor-widget-pdfjs-viewer\" data-id=\"117b2bf8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pdfjs-viewer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<iframe width=\"\" height=\"700\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/plugins\/pdfjs-viewer-for-elementor\/\/assets\/js\/pdfjs\/web\/viewer.html?file=https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/304-1.pdf\"><\/iframe>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This landmark judgment by the Hon\u2019ble Supreme Court of India clarified the legal principles governing contract formation via instantaneous communication methods, such as telephone conversations. The Court distinguished between postal and telephonic communications, <\/p>\n","protected":false},"author":3,"featured_media":5387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[94,95,152,153],"class_list":["post-5386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contract-law","tag-acceptance","tag-communication","tag-postal-communication","tag-telephonic-communication"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/5386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/comments?post=5386"}],"version-history":[{"count":10,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/5386\/revisions"}],"predecessor-version":[{"id":5673,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/5386\/revisions\/5673"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/media\/5387"}],"wp:attachment":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/media?parent=5386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/categories?post=5386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/tags?post=5386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}