My Lord, 1997 Amendment to Section 28 of The Indian Contract Act, 1872 – Retrospective? No. “What emerges on a reading of the Law Commission Report together with the Statement of Objects and Reasons for the Amendment is that the Amendment does not purport to be either declaratory or clarificatory. It seeks to bring about […]
Read more "Section 28 of The Indian Contract Act, 1872"“Recently, in Central Coalfields Ltd. v. SLL-SML (Joint Venture Consortium) it was held by this Court, relying on a host of decisions, the decision making process of the employer or owner of the project in accepting or rejecting the bid of a tenderer should not be interfered with. Interference is permissible only if the decision […]
Read more "Tender Law III"The party issuing a tender (employer) ‘has the right to punctiliously and rigidly’ enforce the terms of the tender. Here is a wholesome principle that the Courts have been following for a very long time and which was articulated in Nazir Ahmad v. King Emperor, (1979) 3 SCC 489: “Where a power is given to […]
Read more "Tender Law II"Section 230 of The Indian Contract Act, 1872 categorically makes it clear that an agent is not liable for the acts of a disclosed principal subject to a contract of the contrary. In Marine Contained Services South Pvt. Ltd. v. Go Go Garments, (1998) 3 SCC 247 the SC held that the defence under Section 230 […]
Read more "Section 230 of The Indian Contract Act, 1872"While authorities are given latitude in formulating tender conditions, Court has been consistent in requiring adherence to conditions once framed, and has entered into fairly detailed scrutiny of administrative decisions. “The law is settled that an essential condition of a tender has to be strictly complied with. In Poddar Steel Corporation, (1991) 3 SCC 273, […]
Read more "Tender Law I"Respondent entered into a contract for construction of a commercial complex. Certain disputes arose. Sole Arbitrator passed an Award on 11.11.2010. Both parties appeared before Arbitrator. Arbitrator did not find any justification to allow any claim of Respondent-Contractor. Respondent believed he could take a somersault. It propelled him to file an application under Section 11 […]
Read more "The Plea of Limitation VII: Section 14 of The Limitation Act, 1963"“The interpretation of Section 56 of the The Contract Act, 1872 came up for consideration in Satyabrata Ghose v. Mugneeram Bangur & Co., (1954) SCR 310 It was held by this Court that the word ‘impossible’ has not been used in the sense of physical or literal impossibility. It ought to be interpreted as impracticable […]
Read more "Section 56 of The Indian Contract Act, 1872 I"My Lord, Perverse Judgment? “This Court has already laid down as to which finding would be called perverse. It is a finding which is not only against weight of evidence but altogether against evidence. This Court has held in Triveni Rubber, AIR 1994 SC 1341, a perverse finding is one which is based on no […]
Read more "Erroneous Judgment v. Perverse Judgment II"Where an agreement is ambiguous, the preferred meaning should be the one that works against the interests of the party who provided the wording. The principle is Contra Proferentem, also known as ‘interpretation against the draftsman’. Such rules are rarely if ever of any assistance when it comes to construing commercial contracts. The principle may […]
Read more "The Contra Proferentem Rule I"It is well settled, if a contract is in several parts, some of which are legal and enforceable and some are unenforceable, lawful parts can be enforced provided they are substantially severable and not merely textually divisible [Shin Satellite, (2006) 2 SCC 628]. Court must consider the question whether the parties could have agreed on […]
Read more "Substantial Severability v. Textual Divisibility"My Lord, How does Public and Private Law elements, in a Contractual Dispute between a State and a Private Party, affect Potential Writ Jurisdiction of a High Court? “If a Contract between a Private Party and a State is under the realm of a Private Law and there is no element of Public Law, the […]
Read more "State-Private Party Contracts"It is well settled, construction of terms of a contract is primarily for an Arbitrator to decide. He is entitled to take a view, which he holds to be correct one after considering material before him and after interpreting provisions of contract. Court while considering challenge to an Arbitral Award does not sit in appeal […]
Read more "An Arbitrator’s Construction of Contract"It is always interesting to note References to a Larger Bench, ones especially made on account of ‘difference’ of opinions amongst Equal Bench Strengths. Eventually, it is flocculation of law of the land; per incuriam decisions stand filtered, retaining still its historical significance. Which SC Judge is known to have scripted, most number of per incuriam decisions? […]
Read more "Referred to Larger Bench II (Answered): Suits of Borrower Against Banks"In Maharashtra State Road Transport Corporation v. Rajendra Bhimrao, (2001) 10 SCC 51 a Two-Judge Bench [Babu and Raju JJ] held, “the rules of the game, meaning thereby the criteria for selection, cannot be altered by the authorities concerned in the middle or after the process of selection has commenced.” In K. Manjusree, (2008) 3 SCC 512 […]
Read more "Referred to Larger Bench I: The Rules of The Game Principle"My Lord, When and to what extent can stipulated liquidated damages for a breach of a contract be held to be in the nature of penalty in absence of evidence of actual loss? [Loss must be proved in all cases where the reasonable possibility exists of proof as considered by Hon’ble Justice R.F. Nariman in […]
Read more "The Law on Compensation for Breach of Contract II"“Where a sum is named in a contract as a liquidated amount payable by way of damages, the party complaining of a breach can receive as reasonable compensation such liquidated amount only if it is a genuine pre-estimate of damages fixed by both parties and found to be such by Court. In other cases, where […]
Read more "The Law on Compensation for Breach of Contract I"In the year 2000, the State of Maharashtra awarded a contract for some construction work to Atlanta Limited. Disputes borne out of the contract were to be decided through Arbitration. Recourse to a Court against an Arbitral Award may be made only by an application for setting aside such Award in accordance with Sub-Section (2) […]
Read more "The Rare Case Where Section 42 of the Arbitration Act Fails"
The Last Word 