Court : Mumbai
Reported in : (1904)ILR27Bom189
..... pay his debt to them before redeeming, an offer of payment to one of the promisees has, under the lash paragraph of section 38 of the indian contract act, the same legal consequences as an offer of payment to all of them. but where, as in the present case, the mortgage was made not to several persons ..... of wallace v. kelsall (1840) 7 m. &. w. 264 and the last paragraph of section 38 of the indian contract act, which provides that 'an offer to one of several joint promisees has the same legal consequences as an offer to all of them.'2. so far as this madras decision proceeds upon the english law, its ..... the principle of the english common law as to the operation of a release given by one of two or more joint promisees is not affected by the indian contract act, and is the law here, as held in barber maran v. ramana goundan (1897) 20 mad. 461 already cited it is clearly inapplicable to the ..... death, inherit his estate, are to be regarded an joint promisees. there is nothing either in section 38 or in the definition of 'promisee' in the indian contract act to show that they must be so regarded. the right which the several-heirs jointly get on the mortgagee's death to enforce the mortgage is a right ..... the decision in barber maran v. ramana goundan (1897) 20 mad. 461 and the construction put there upon the last paragraph of section 38 of the indian contract act. in that case the payment was made to one of several joint mortgagees, and it may well be that in such a case where a mortgagor has .....Tag this Judgment!
Court : Mumbai
Reported in : AIR1954Bom478; (1954)56BOMLR838; ILR1955Bom11
..... ob-viously got to be read subject to s. 23 of the indian contract act. section 23 of the contract act provides that agreements which are against public policy are void. section 3 of the legal practitioners (pees) act does not say that, notwithstanding the provisions of s. 23 of the indian contract act, a legal practitioner can enter into any sort of a private agreement with his client. ..... in enacting the legal practitioners (fees) act, l926, the legislature could not have overlooked the obvious, namely that the ..... that the agreement must not trespass on the provisions of s. 23 of the indian contract act. in view of the fact that s. 23 applies to all contracts whatsoever, it was hardly necessary for the legislature to import the same provisions while enacting s. 3 of the legal practitioners (fees) act, xxi of 1926.mr. gauba relied upon the fact that the legislature had ..... unfettered. it is no doubt wide in its realm; but the exercise of this freedom must always be subject to the considerations mentioned in s. 23 of the indian contract act,if a contract is opposed to public policy, it would be treated as invalid by courts in india, and this conclusion cannot be challenged on the ground that it involves an .....Tag this Judgment!
Court : Delhi
Reported in : AIR2006Delhi98; III(2006)BC82; 2006(1)CTLJ123(Del); 127(2006)DLT1
..... bank guarantees, would, thereforee, be governed by the statutory provisions. the common law principles as applicable in england or in the usa which have been imported into the indian legal system after the indian contract act, 1872 would only supplement it and not supplant it. this, i am afraid, is often lost sight of when considering the question of injunction of bank guarantees.17 ..... the beneficiary, such fraudulent action on its part would be liable to be injuncted in view of the well settled legal principles.34. thus, whichever way one looks at the problem the answer is the same. if the statutory provisions of the indian contract act and in particular section 134 are considered, the surety (the bank) stands discharged because the principal-debtor (the ..... forfeit the earnest money in the circumstances obtaining in this case.11. to elucidate, let me refer to the first principles as set out in the indian contract act, 1872 (hereinafter referred to as the contract act). when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other ..... on principal-to-principal basis and by reason wherefore the statute has provided both the creditor and the guarantor some relief as specified in section 130 to 141 of the indian contract act.32. the principles deducible from the aforesaid decisions is that courts ought not to grant injunction to restrain encashment / invocation of bank guarantees or letters of credit except .....Tag this Judgment!
Court : Delhi
Reported in : III(2006)BC554; 2006(1)CTLJ448(Del); 129(2006)DLT38; 2006(88)DRJ291; (2006)144PLR24
..... includes bank guarantees, would, thereforee, be governed by the statutory provisions. the common law principles as applicable in england or in the usa which have been imported into the indian legal system after the indian contract act, 1872 would only supplement it and not supplant it. this, i am afraid, is often lost sight of when considering the question of injunction of bank guarantees.17 ..... and is governed by principles as set out in section 126 to 147 of the indian contract act, 1872. recently, in d.s. construction ltd v. rites limited : air2006delhi98 , i had occasion to consider this aspect of the matter. the following portion of the said decision summarizes the legal position:-16. to appreciate the arguments of counsel, it would be necessary to state ..... ....10. section 134 of the indian contract act, 1872 provides for the discharge of the surety by release or discharge of the principle debtor. it provides that the surety is discharged by any contract between the creditor and the principal debtor, by which the principal debtor is released, or by any act or omission of the creditor, the legal consequence of which is the discharge ..... the defendant no. 1 and the plaintiff, i.e., between the creditor and the principal debtor even to the limited extent permissible under section 134 of the indian contract act, 1872. another important circumstance is that the guarantee itself reveals that the bank is liable to pay on the first demand without the bank having any right of objection. .....Tag this Judgment!
Court : Kolkata
Reported in : AIR1957Cal44,61CWN27
..... contracts under the english law bears the heading 'certain relations resembling those ..... itself, however, does not state that statutory debts are constructive contracts but that article is placed under the general heading 'other constructive contracts' and from this it is argued that statutory obligations constitute a class of constructive contracts. in our law, however, the expression 'constructive contract' is not used anywhere. chapter v, indian contract act which deals with legal relations analogous to what have been described as constructive ..... created by contract'. if they are relations resembling those created by contract they cannot be said to be contracts. moreover the observations of .....Tag this Judgment!
Court : Supreme Court of India
..... the amount of earnest money would be payable in the event the contract was not performed, is legal in terms of the indian contract act. the imposition and the recovery of penalty on breach of a contract is legally impermissible under the indian contract act. as regards liquidated damages, the court would have to scrutinize the ..... pleadings as well as evidence in proof thereof, in order to determine that they are not in the nature of a penalty, but rather as a fair pre-estimate of what the damages are likely to arise in case of breach of the contract ..... opined as follows: 10. section 74 of theindian contract actdeals with the measure of damages in two classes of cases (i) where the contract names a sum to be paid in case of breach and (ii) where the contract contains any other stipulation by way of penalty. we ..... context that sections 73 and 74 of the contract act came to be considered. this court held that the clause requiring the refund of the price of the rice consignment could not be viewed as a penalty which is not legally recoverable in india and therefore the award was ..... excruciatingly lengthy and judgments avoidably prolix. the first important judgment of this court on the question of sections 73 and 74 of the contract act is that of the constitution bench in chunilal v. mehta. the two significant issues which arose were firstly, as to what would .....Tag this Judgment!
Court : Supreme Court of India
..... within the purview of section 56 of the indian contract act. it should be ..... the english law and the statement of indian law contained in section 56 of the indian contract act summed up the legal position with regard to frustration of contract as follows:- the doctrine of frustration of contract is really an aspect or part of the law of discharge of contract by reason of supervening impossibility or illegality of the act agreed to be done and hence comes ..... been treated by courts as a question of construction depending upon the true intention of the parties. in contrast, the statutory provisions contained in section 56 of the indian contract act lay down a positive rule of law and english authorities cannot therefore be of direct assistance, though they have persuasive value in showing how english courts have approached ..... the result of the appellant s own election, and, therefore, no frustration of the contract.57. this court distinguished the aforesaid judgment and observed as follows:- we think the principle of this case applies to the indian law and the provisions of section 56 of the indian contract act cannot apply to a case of self-induced frustration . in other words, the .....Tag this Judgment!
Court : Income Tax Appellate Tribunal ITAT Lucknow
Reported in : (2006)100ITD93Luck
..... the schemes floated by the principals, such violations has to be presumed to have been done by the principal only. as according to the provisions of section 226 of the indian contract act, the legal consequences have to be faced by the principals, penalty can be imposed upon the principals and not upon the agents.5. the learned cit dr shri pandey, while challenging ..... considered as act of the principal. in the case of innosearch ltd ..... section 226 of the indian contract act, obligations arising from the acts of the agent are discharged by the principal.this provision is as under: contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner and will have the same legal consequences, as if the contracts had been entered into and the acts done by the principal ..... in person.8.15 in view of the above and other provisions of the indian contract act, it is clear that the act of the agent is to be .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 2002(6)ALD176
..... a contact subject to obtaining the sanction from the competent authority therein and it is an incident of the contract and hence such an agreement is neither opposed to public policy nor is void under section 23 of the indian contract act and it is legal and enforceable. in denzyl winston ferries v. abdul jaleel, : air1992ap246 , it was no doubt held that where the suit ..... the facts and circumstances of the case had arrived at a conclusion that ex.al is neither opposed to public policy nor hit by section 23 of the indian contract act. section 23 of the indian contract act reads as follows:'what consideration and objects are lawful, and what not- the consideration or object of an agreement is lawful, unless- it is forbidden by law; or ..... had maintained that a finding had been recorded by the trial court that the transaction is not opposed to public policy and is not hit by section 23 of the indian contract act and having recorded such a finding, negativing the relief of specific performance also is totally unsustainable. the learned counsel also had drawn my attention to the respective pleadings of the ..... a bona fide purchaser without notice of prior agreement of sale. it was also specifically pleaded that the transaction is opposed to public policy and also section 23 of the indian contract act.7. the 6th defendant and the 10th defendant filed their written statements which had been adopted by defendants 8, 13 and 15 denying all the material allegations and taking a .....Tag this Judgment!
Court : Delhi
..... vs. balkishan dass air 196.sc 1405.after examining the right of the appellant to forfeit advance licence fee as liquidated damages in the light of section 74 of indian contract act and the legal principles settled in fateh chands case, the learned single judge held that appellant was entitled to forfeit only the earnest money. the findings by learned single judge on this ..... with terms and conditions of the tender documents nor the appellant could plead and prove any loss so as to stake its claim for liquidated damages under section 74 of indian contract act.32. other reason given by the appellant claiming its right to forfeit the two months advance licence fee is that the premises had remained unoccupied for two months causing loss ..... . taking note of the various clauses of tender documents and respective contentions, referred to the legal position laid down by constitution bench of supreme court in fateh chands case (supra), we concur with the finding of learned single judge that under section 74 of the contract act, appellant could not have forfeited the two months advance licence fee taking recourse to clauses 4 ..... money, that clause cannot be given effect to unless the defendant pleads and proves losses caused to him on account of breach by the plaintiff. (iii) section 74 of the contract act prescribes the upper limit of damages which can be imposed, and the court is empowered subject of course to loss being proved, only to award reasonable compensation, the upper limit .....Tag this Judgment!