Samaratmal Uttamchand v. Govind

Chandavarkar, J.:— We think the Subordinate Judge's view is correct. Though the word “price” is capable of being understood either as money or any other recompense in value, it is clear from the illustration to section 78 of the Contract Act that it is used there in the former sense. In regard to the sale of goods “the price must consist of money paid or promised:” (Benjamin on Sale, 4th Edition, pages 2 and 89.) “The difference between a sale and an exchange is this, that in the former the price is paid in money, whilst in the latter it is paid in goods by Way of barter.” (Chitty oh Contracts, 12th Edition, page 430.) This distinction has been observed by the Legislature in this country, as will appear on a reference to section 118 relating to exchange and the sections relating to sales in the Transfer of Property Act. The Subordinate Judge's view is also supported by the decisions of the Madras High Court in Queen Empress v. Appavu(1) and in Volkart Brothers v. Vettivelu.(2)

Order accordingly.