#Contractual Breach

The Delhi High Court struck down NHAI’s two-year debarment of SAI Consulting, ruling that blacklisting is an extraordinary sanction that can be imposed only after showing serious misconduct and affording a fair hearing. The decision limits agencies to use debarment proportionately, protecting contractors from punitive bans for mere contractual lapses.

The Kerala High Court ruled that when a seller defaults on a sale agreement, the buyer is entitled to interest on the advance payment from the very date it was made, not from the date of filing suit. This corrects unjust enrichment and aligns restitution principles with commercial reality, impacting all property buyers who advance funds under conditional agreements.

The J&K & Ladakh High Court refused to dismiss a suit for specific performance over a 10-day delay in filing the restoration application, holding that credible explanation, partial payment of Rs. 15 lakhs, and a binding undertaking to pay the remaining Rs. 1.15 crore within a month justified adjudication on merits. This sets a precedent for courts to prioritize substantive justice over rigid procedural compliance in contractual enforcement cases.

Bombay High Court holds that repeated default in transit rent payments permits landlords to notify MCGM to halt project clearances, establishing a novel remedy for contractual breaches.

Bombay High Court holds that parties cannot invoke no-escalation clauses to avoid liability when their own breach causes delay and additional costs to the contractor.

NCDRC holds that unregistered indemnity deeds can be relied upon to establish liability for deficiency in service under Consumer Protection Act, 1986, when compensation is sought for breach.