#Indian Contract Act

The Commission held that a homebuyer's temporary occupation of a substitute flat with express written objection does not constitute acceptance of permanent substitution, preserving the right to refund of the full booking amount (Rs. 53.43 lakh) for the undelivered flat. It awarded staggered interest at 9% pre-occupation and 7% during occupation, plus Rs. 1 lakh costs, payable within 90 days. The ruling protects buyers who occupy alternative units under protest while asserting their original contractual rights.

Indian law governs the SAP support contract, the Delhi High Court held, rejecting the defendant's claim that EU sanctions excuse performance absent proof and ordering restoration of services to keep the refinery running.

The Gujarat HC held a POA is not irrevocable unless the agent has an interest in the subject-matter, letting the principal cancel it even after partial use. Any sale deed executed by the agent after cancellation is void, shielding principals from unauthorized transfers.

The Division Bench held that the vendor's obligation to transfer 51% shares and reconstitute the board was a condition precedent, so its non-performance discharged the purchaser's payment duty. The purchaser's SMS communication avoiding the contract was lawful, and the vendor's Rs. 5.51 crore damages claim failed for want of proof. The purchaser's Rs. 1 crore advance was refunded under Section 65 of the Contract Act.

Delhi High Court confirmed that a seller may retain only the expressly stipulated earnest-money amount, rejecting forfeiture of the full ₹17.5 million paid. The ruling limits Section 74 ICA to penal clauses and excludes later part-payments, urging parties to define earnest money separately.

The Delhi High Court affirmed that Section 34 of the Arbitration and Conciliation Act permits setting aside an award only on patent illegality or public-policy grounds. Consequently, the appellant’s force-majeure claim and interest-rate dispute were dismissed, narrowing set-aside avenues for parties in commercial and real-estate arbitrations.

Bombay High Court rules that an arbitration clause in a redevelopment agreement remains enforceable despite subsequent supplementary agreements, unless the original contract is explicitly substituted. The judgment reinforces the survival of arbitration clauses under the Indian Contract Act and Arbitration and Conciliation Act 1996, impacting cooperative housing societies and developers in contract disputes.

NCLAT holds that any renewal, novation, or variance of credit facilities without the personal guarantor's consent automatically discharges their liability under Section 133 of the Indian Contract Act. This ruling reinforces the protection of guarantors under the IBC and sets a precedent for creditors to secure explicit consent for modifications.

The Andhra Pradesh High Court ruled that dominant parties in fiduciary relationships bear the burden of proving fairness in property transactions, especially when fraud or undue influence is alleged. The court upheld the cancellation of sale deeds obtained through coercion, reinforcing protections for illiterate and dependent individuals under property law.

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.

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.

Bombay High Court rules that a verbal property sale agreement can be specifically enforced if the defendant's silence after a legal notice constitutes conduct under Section 9 of the Indian Contract Act. The judgment underscores that preponderance of probabilities can validate verbal contracts in real estate disputes, impacting property buyers and sellers relying on informal agreements.

The Andhra Pradesh High Court has ruled that an agreement of sale executed solely as security for a loan creates a creditor-debtor relationship, not a binding contract for transfer of property. Specific performance is unavailable; the rightful remedy is a money decree with pre-decree interest at 12% and post-decree interest at 6%, clarifying a critical boundary in property finance transactions affecting lenders and borrowers alike.

The Madras High Court ruled that while dual sale agreements designed to evade stamp duty are void, payments made under them are recoverable to prevent unjust enrichment. It affirmed the validity of contract assignments and emphasized that claims based on fabricated receipts demand concrete, verifiable evidence - not mere assertions.

Supreme Court rules that contractual clauses barring judicial or arbitral review of liability disputes in State contracts violate Section 28 of the Indian Contract Act. The State cannot unilaterally exclude accountability, ensuring public contracts remain subject to independent adjudication.