#Contractual Liability

Karnataka High Court upholds payment liability for refurbishment and O&M services under a commercial contract, ruling that minor deficiencies do not absolve the defendant of payment obligations. The judgment reinforces the 'substantial performance' doctrine, ensuring contractors receive dues for completed work, subject to 18% interest for delayed payments.

The Karnataka High Court has ruled that Motor Accidents Claims Tribunals cannot adjudicate claims by vehicle owners seeking compensation for damage to their own insured vehicles from insurers. Such disputes are contractual in nature and must be resolved in civil or consumer forums, clarifying the boundary between statutory tort claims and insurance policy enforcement.

Allahabad High Court rules that payment obligations under a contract arise solely after fulfillment of a condition precedent-here, the handover of property in a functional state. The judgment reinforces that reciprocal promises under Sections 52 and 54 of the Indian Contract Act are enforceable only upon compliance with agreed prerequisites, impacting contract execution and dispute resolution.

Karnataka HC rules that an insurance package policy’s contractual terms override the statutory limitation under Section 166 of the Motor Vehicles Act, entitling the vehicle owner to ₹1.39 lakh compensation for permanent disability. The judgment reinforces that insurers cannot evade liability based on technical bars if the policy explicitly covers such risks.

Bombay High Court holds insurer liable under policy for worker's death at construction site, even if employer denies employment; policy language governs liability.

Madras High Court upholds arbitral award holding that completion certificate does not extinguish liability for defective pile design under Section 34 of Arbitration Act.

Bombay High Court holds that comprehensive motor insurance policies must cover pillion riders for death or injury, irrespective of familial relationship to the owner-driver.