#breach of contract

Andhra Pradesh High Court dismisses a cheating complaint under Section 420 IPC, ruling that failure to repay an amount after land registration does not amount to criminal dishonesty unless fraud existed at the time of the transaction. The judgment clarifies the distinction between civil disputes and criminal cheating, emphasizing the requirement of mens rea at inception.

The Kerala High Court ruled that the state cannot withhold or claim damages upon contract termination unless it proves actual financial loss, mandating the return of the security deposit with 9% interest. This reinforces the principle that liquidated damages must reflect real harm, not serve as punitive leverage in public procurement - a critical safeguard for contractors.

Madhya Pradesh High Court upholds recovery decree under a risk purchase clause, ruling that payment delays do not invalidate contractual liability. The court modified the interest rate to 12% under Section 34 CPC, setting a precedent for commercial contract disputes involving market procurement costs.

The Kerala High Court has ruled that merely failing to deliver goods after receiving advance payment does not constitute criminal cheating under Section 420 IPC unless there is evidence the accused harbored dishonest intent at the time of receiving the payment. This clarifies the boundary between civil contract disputes and criminal fraud, protecting business owners from misuse of criminal law in commercial disagreements.

Karnataka High Court rules that contractors cannot claim price escalation post-tender rejection, even if work commenced, as oral assurances are unenforceable against written tender conditions. The judgment reinforces that public procurement contracts must strictly adhere to their explicit terms, protecting government entities from unintended financial liabilities.

Karnataka HC dismisses a contractor’s price escalation claim, ruling that promissory estoppel does not apply without a clear, binding promise beyond the contract’s terms. The court upheld rescission due to breach and denied relief for unproven losses, reinforcing strict adherence to contractual clauses in public procurement disputes.

Sikkim High Court rules that failure to supply goods after advance payment, absent proof of dishonest intent at contract formation, constitutes a civil breach-not criminal cheating. While the FIR was not quashed at the charge-framing stage, the court emphasized that mere non-performance does not justify criminal prosecution under IPC Sections 420 or 409, reinforcing the need for clear evidence of fraudulent intent.

The Himachal Pradesh High Court ruled that contractual termination clauses permitting termination 'without cause' do not override explicit notice requirements in the agreement. The ruling reinforces that procedural compliance remains binding, protecting consultants and service providers from abrupt contract withdrawals without prior notice.

Madras High Court holds that termination of contract after expiry of extended time is legally void; forfeiture of deposits invalid without subsisting contract.

Calcutta High Court quashes criminal proceedings arising from a failed real estate MOU, holding that breach of contract without initial dishonest intent does not constitute cheating or criminal breach of trust.

Supreme Court rules that in public utility projects, proof of actual loss is not required for awarding liquidated damages under Section 74 of the Indian Contract Act.