Facts

• Bhagwandas Goverdhandas Kedia (Appellant- Defendant) was the founder of Kedia Ginning Factory Oil Mills of Khamgaon.
• M/s Girdharilal Parshottamdas & Company of Ahmedabad was the Respondent - Plaintiff.
• The contract was formed where the Appellant agreed to supply cotton seed cake to the Respondent, via a telephone conversation.
• The contract was accepted over the phone at Khamgaon, with the delivery and payment of the goods also stipulated to occur at Khamgaon.
• The Appellant-Defendant failed to supply cotton seed cake as agreed under an oral contract dated July 22, 1959. Therefore, the case was filed before the Trial court concerning the jurisdiction.
• The Trial Court ruled that the Civil Court at Ahmedabad had jurisdiction against which the Appellant-Defendant filed the Revision Petition before the Hon’ble High Court of Gujarat.
• The aforementioned revision petition was rejected by the High Court.
• Hence, the present Special Leave Petition (SLP) was filed before the Hon’ble Supreme Court.
  

Background/ Procedural Posture

Trial Court Proceedings

• The Respondent - Plaintiffs filed a suit in the City Civil Court at Ahmedabad, claiming the cause of action arose there as an offer was made from Ahmedabad via phone.
• The Court held that in telephone contracts, where the acceptance of an offer is communicated determines where the contract is made. As the acceptance was communicated in Ahmedabad, that court had jurisdiction.
  

High Court Appeal

• The Appellant - Defendant filed a Revision Petition against the Trial Court's order before the High Court of Gujarat, but their plea was rejected.
• Hence, the Special Leave Petition was filed before the Hon’ble Supreme Court of India.
  

Main Issue

1. Whether the ordinary rule that a contract is completed only when acceptance is communicated apply to contracts made via telephone?
2. Whether the exception for postal and telegraphic communications apply? (Page 9).