Bombay Securities Contracts Control Act, 1925. The words ‘ready delivery contract’ has been defined in Sub-section (4) of Section 3 of the said Act which reads as under:
(4) ‘ready delivery contract’ means a contract for the purchase or sale of securities for performance of which no time is specified and which is to be performed immediately or within reasonable time.
Under the said definition ready delivery contract is a contract for purchase or sale of securities for the performance of which no time is specified and it has to be performed within reasonable time. In that light of the matter, Division Bench has made a distinction between contingent contract and regular contract. It has been held by the Division Bench that a contingent contract is not contract at all till such contingency happens. However, provision of Securities Contract (Regulation) Act, 1956 defines the spot delivery contract as under:
2(i) ‘spot delivery contract’ means a contract which provides for,:
(a) actual delivery of securities and the payment of a price therefore either on the same day as the date of the contract or on the next day, the actual period taken for the despatch of the securities or the remittance of money therefore through the post being excluded from the computation of the period aforesaid if the parties to the contract do not reside in the same town or locality;
(b) transfer of securities by the depository from the account of a beneficial owner to the account of another beneficial owner when such securities are dealt with by a depository;
The provision of spot delivery contract are pari materia different then the provision of ready delivery contract as provided under the Bombay Securities Contract Control Act, 1925. The provision of Section 2(4) which has to be read with Section 6 of the Bombay Securities Control Act, 1925 in my opinion as contrast to the provision of Section 2(i) of the Securities Contracts (Regulation) Act, 1956 which provides for prohibition for entering into any contract which is other than the spot delivery provides for different scheme altogether. Under the provisions of Securities Contracts (Regulation) Act, 1956 spot delivery means delivery of securities and payment of a price thereof either on the same day i.e., as on the date of the contract or on the next day.