In Deo v. Rias (1832) 8 Bing, 178, Tindal, C.J. held that "we are to look at the words of the instrument and to the acts of the parties to ascertain what their intention was; if the words of the instrument be ambiguous, we may call in the aid of the acts done under it as a clue to the intention of the parties. In Chapman v. Bluck (1838) 4 Ring, 187, Park J. held that the intention of the parties may be collected from the language of the instrument and may be elucidated by the conduct they have pursued. Odgers in his Construction of Deeds and Statutes, 5th Edn. by Dworkin at p. 53 stated that in the case of an ambiguity, judicial notice will be taken of the way in which the parties themselves have interpreted their rights and duties under the document.
In that case the question was "who was the real purchaser of the goods in question". Gajendragadar, J. (as he then was) speaking for the court held that the appellant acted on account of the disclosed partner and as such he was not entitled to sue. It was also further held that whether the contract was entered on behalf of the principal recital in the relevant document could provide the necessary clue. The letters and the confirmation slips were held to be read in the light of the bought and sold notes and the conduct of the parties was presumed to be consistent with them. The signature or how the parties described themselves was held to be not relevant.
IN THE SUPREME COURT OF INDIA
Civil Appeal No. 5432 of 1992
Decided On: 18.12.1992
American Express Bank Ltd.
Vs.
Calcutta Steel Co. and Ors.
Coram:
A.M. Ahmadi, M.M. Punchhi and K. Ramaswamy, JJ.
Citation:(1993) 2 SCC199
