#contractual obligations

The commission ordered the hotel to refund the consumer’s Rs 16.12 lakh advance, plus interest, compensation and costs, because the promised postponement could not override the contract’s cancellation clause. This ruling reinforces that any advance must be returned when the agreed service is not performed, safeguarding consumers in hotel and event bookings.

Himachal Pradesh High Court directs immediate payment of arrears under the PRASAD Scheme's rehabilitation subsistence allowance, affirming contractual obligations as legally enforceable via mandamus. While the court ensured payment of principal arrears, it left the petitioner's 12% interest claim unaddressed, setting a precedent for state accountability in rehabilitation disputes.

The Madhya Pradesh High Court has ruled that once a bidder relies on tender conditions-such as a guaranteed 45-day mela duration-the government cannot arbitrarily shorten it. This reinforces the principle of legitimate expectation in public procurement, protecting contractors who invest time and capital based on official terms, and sets a precedent for enforcing contractual integrity against administrative overreach.

The Bombay High Court has mandated that state departments must release undisputed running bills to contractors within two weeks, or face judicial consequences. This ruling reinforces contractual fairness in public infrastructure projects and protects contractors from financial collapse due to administrative delay, directly safeguarding public interest and project continuity.

The Bombay High Court struck down the Union's retrospective imposition of a one-time spectrum charge on telecom operators for spectrum held above 6.2 MHz since 2008, ruling that neither the Telegraph Act nor license agreements empowered such a levy. This decision reinforces contractual certainty in telecom licensing and curbs executive overreach disguised as revenue recovery, protecting operators from arbitrary fiscal demands.

Allahabad HC reinforces that a plaintiff seeking specific performance must prove uninterrupted readiness and willingness to perform contractual obligations, even if the vendor fails to fulfill conditions like obtaining freehold status. The court held that heirs cannot benefit from their predecessor's default, ensuring equitable enforcement of property sale agreements.

Bombay HC rules that employers cannot withhold service certificates or relieving letters under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, even if an employee breaches a training bond. However, the employee remains liable for liquidated damages as per the bond agreement, ensuring a balance between contractual obligations and employment rights.

The Andhra Pradesh High Court has ruled that public sector undertakings cannot withhold payments for completed public works merely due to budgetary constraints, even after bills are formally finalized. This reinforces the principle that state instrumentalities are bound by contractual obligations and must pay admitted dues promptly, preserving the contractor’s right to claim interest in civil court - a critical precedent for infrastructure contractors across India.

Bombay High Court rules that a successor developer assuming project obligations via a development agreement is bound by RERA, 2016 to honor allotment commitments to buyers, even without direct contractual privity. The judgment reinforces RERA’s consumer protection mandate, ensuring buyers retain rights against subsequent developers.

Uttarakhand High Court rules that contractual defaults in license payments cannot deprive a farmer of crop harvesting rights if it results in total loss. The court allowed the petitioner to harvest the crop, directing payment of dues by 30.09.2026, emphasizing proportionality and equitable relief in agricultural contracts.

Madras High Court reinforces that educational institutions cannot retain academic certificates as leverage for unpaid fees, affirming that such retention violates student rights and settled legal principles. The ruling clarifies that certificates are not contractual securities and mandates their immediate release, impacting medical and dental education institutions across Tamil Nadu.

The Calcutta High Court ruled that when a company’s board formally acknowledges unpaid salary, perquisites, leave encashment, and gratuity owed to a Managing Director-even if voluntarily deferred-those amounts become legally enforceable debts. This sets a critical precedent for corporate accountability, ensuring that board resolutions can override informal deferrals and protect executive compensation rights under contract law.

Andhra Pradesh High Court mandates completion of administrative processes within 10 weeks and payment of dues within 4 weeks thereafter for certified public works, holding bureaucratic delay cannot justify non-payment. Contractors are entitled to timely remuneration as a matter of contractual right, enforceable under writ jurisdiction.

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.

Bombay High Court clarifies that in debt recovery, payments must be appropriated first against accrued interest, then principal, affirming the traditional rule of equitable adjustment.