Report No. 61
1D.3. Unincorporated associations.-
Though the above case1 related to a co-operative society, the court (Shah, J.) did make certain observations as to the position in regard to unincorporated societies, as follows:-
"In the case of an unincorporated society, club or a firm or an association, ordinarily the supply and distribution by such a society, club, firm or an association, of goods belonging to its members, may not result in sale of the goods which are jointly held for the benefit of the members of the society, club, firm or the association, when, by virtue of the relinquishment of the common rights of the members, the property stands transferred to a member in payment of a price, and the transaction may not prima facie be regarded as a 'sale' within the meaning of the Act."
But the Court made it very clear (towards the end of the judgment)2 that it was not called upon in this case to decide whether an unincorporated club which supplies goods for a price to its members, may be regarded as selling goods to its members.
1. Para. 1D.2, supra.
2. Dy. C.T.O. v. Enfield India Ltd., AIR 1968 SC 838, (843), para. 13.
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