#Contractual Obligation

West Bengal State Consumer Commission rules that financiers cannot be held liable for a dealer’s failure to register a vehicle unless collusion or a contractual obligation is proven. The ruling clarifies that deficiency in service claims against financiers require evidence of active involvement or breach of duty, protecting lenders from vicarious liability in consumer disputes.

NCLAT rules that a contractual obligation to pay minimum guaranteed royalty qualifies as operational debt under IBC Section 9, even in the absence of invoices, if the default is admitted and exceeds ₹1 lakh. This expands the scope of operational debt to include uninvoiced but contractually mandated payments, impacting creditors' rights in insolvency proceedings.

Delhi State Consumer Commission rules that developers failing to obtain completion and occupancy certificates commit deficiency in service under the Consumer Protection Act, entitling buyers to compensation. The ruling reinforces contractual obligations in real estate transactions and impacts homebuyers' rights to lawful possession.

Chhattisgarh High Court clarifies that while compensation under Section 166 of the Motor Vehicles Act is barred if the owner-driver dies due to their own negligence, insurers must still honor the contracted personal accident cover. The ruling awards Rs. 1,00,000 with 6% interest from 2019, reinforcing the distinction between statutory liability and contractual obligations in motor accident claims.

In the absence of a specified repayment location, the HP High Court ruled that the debtor must pay at the creditor’s residence, making Shimla the proper jurisdiction for recovery. This clarifies a critical default rule under Section 16 of the Indian Contract Act, impacting lenders and borrowers nationwide where loan agreements lack payment terms.

The Madhya Pradesh High Court holds that dead rent payments under mining agreements remain legally enforceable even when mining operations are delayed due to pending statutory clearances, affirming that contractual obligations are not automatically suspended by regulatory bottlenecks. This ruling impacts mining companies and state authorities by clarifying that delays beyond the lessee’s control do not extinguish financial liabilities tied to leasehold rights.

Madras High Court rules that failure to provide lawful access pathway as contractually mandated bars recovery of outstanding payments under the Specific Relief Act, even if equipment was commissioned. The ruling underscores that non-compliance with material contractual obligations disentitles a party from claiming payment.

Calcutta High Court rules that promissory estoppel cannot bind the state when public interest-such as maximizing revenue from fly ash auctions-demands otherwise. The judgment clarifies that contractual obligations to supply fly ash at discounted rates must yield to broader fiscal and environmental equity considerations, setting a precedent for state contracts involving hazardous by-products.

Bombay High Court rules that the limitation period for arbitration claims under the Arbitration and Conciliation Act begins upon certification of the final bill, not upon its subsequent denial. The court emphasized that Section 18 acknowledgment requires a proven, unambiguous admission, reinforcing strict adherence to contractual timelines in commercial disputes.

The MP State Consumer Commission ruled that a 29-day delay in filing an FIR for a stolen truck violates insurance policy terms, justifying claim repudiation. Insurers can now cite procedural lapses in theft claims, impacting policyholders' burden of proof under the Consumer Protection Act.

The Bombay High Court has ruled that Section 22(1) of the Apprentices Act, 1961 does not create an automatic right to absorption into regular service, even if vacancies exist. Employers are under no legal obligation to hire apprentices as permanent staff unless the apprenticeship agreement explicitly guarantees employment, significantly limiting claims by trainees in public sector undertakings.

Bombay High Court grants interim relief in commercial suit where unique packaging sleeves are essential for production, emphasizing irreparable harm during peak season.

Kerala High Court holds that 10% exit fee paid by NEET PG candidates for mop-up counselling is forfeitable under prospectus terms, not merely a registration charge.