Topic
The Bombay High Court ruled that a party cannot obtain an interim mandatory injunction to revive a determinable contract; the dispute must proceed to arbitration, with the Rs 1 lakh caution money kept in escrow. This curtails injunctive relief in commercial contracts and reinforces arbitration clauses.
The Allahabad High Court has held that arbitral awards ordering restoration of dealership under terminable agreements violate Section 14 of the Specific Relief Act, which bars specific enforcement of determinable contracts. This clarifies that even in commercial arbitration, parties cannot compel performance of agreements designed to be terminable at will - a critical limit on arbitral powers in distributorship disputes.
Madras High Court rules that contracts terminable at will under Section 14(d) of the Specific Relief Act cannot be specifically enforced, regardless of procedural defects in termination. The decision sets aside an arbitral award ordering licence renewal, reinforcing that courts lack power to revive determinable agreements.