#contractual rights

The Karnataka High Court has ruled that contractors executing state projects must be reimbursed for additional GST liability arising after the GST regime's 2017 rollout, when contracts were originally priced under VAT. This sets a critical precedent for public works contractors nationwide, affirming that fiscal shifts cannot be unilaterally borne by private parties without contractual recourse or state compensation.

The Bombay High Court affirmed that an authorized signatory acting on behalf of a company retains the legal right to receive transit accommodation compensation under the Permanent Alternate Accommodation Agreement, even amid familial conflicts and unchallenged allegations of document fabrication. This ruling reinforces corporate agency in property compensation matters and shields authorized representatives from personal disputes affecting statutory entitlements.

The Chhattisgarh High Court has ruled that renewal of a lease on public premises is not an automatic right but a fresh grant subject to new terms, allowing SAIL to impose revised charges after the original term ends. This clarifies the legal position for thousands of shop lessees in government townships, reinforcing that administrative policy shifts in public asset management are lawful absent arbitrariness or constitutional breach.

The Punjab & Haryana High Court ruled that a mortgagee who disclaims interest in prior litigation is estopped from later claiming insurance proceeds, reinforcing that judicial admissions bind parties even against contractual rights. This decision underscores the irrevocable nature of admissions in legal proceedings, impacting mortgagees and insurers in similar disputes.

Bombay High Court clarifies that a landowner granting limited development rights while expressly reserving FSI/TDR in the agreement does not qualify as a 'promoter' under the Maharashtra Ownership Flats Act (MOFA). The ruling sets aside an injunction, reinforcing that bare injunction suits are not maintainable where contractual rights are explicitly preserved.

Madras High Court rules that pandemic-induced disruptions trigger Force Majeure, mandating a 273-day license extension for a railway stall operator. The judgment emphasizes substantive justice over formalistic application of contractual terms, setting a precedent for public procurement disputes.

Kerala High Court holds that employees entitled to higher gratuity under express agreement or contract cannot be denied beyond statutory cap under Section 4(3) of the Payment of Gratuity Act.