Topic
The Delhi High Court held that a buyer’s awareness of existing mortgage defeats a fraud claim for refund of sale consideration. The court applied caveat emptor, holding that knowledge of encumbrances negates fraud claims and bars vexatious suits.
The Supreme Court ruled that an indemnity clause in a consent award becomes enforceable immediately upon crystallisation of liability, without awaiting final judicial confirmation. This decision clarifies that parties cannot delay indemnity payments under arbitration awards, impacting commercial dispute resolutions involving indemnity contracts.
Bombay High Court clarifies that the moratorium under Section 96 of the Insolvency and Bankruptcy Code (IBC) protects only personal guarantors, not the principal borrower. Creditors retain the right to proceed against the borrower under the Contract Act, ensuring recovery actions remain unaffected by guarantors' insolvency.
Madras HC rules that an unregistered partnership firm can recover payment for goods supplied under Section 70 of the Contract Act, overriding the bar under Section 69(2) of the Partnership Act. The court dismissed the MSMED Act interest claim due to the absence of a formal contract, reinforcing the principle of quantum meruit for non-contractual supplies.
Bombay High Court rules that termination of a redevelopment agreement does not entitle the developer to retain the FSI purchase price, as Section 64 of the Contract Act mandates restitution to prevent unjust enrichment. The society is directed to refund Rs. 7.08 crore to the developer, reinforcing contractual fairness in property disputes.