Tag: Breach of Contract

Promises Must Be Kept: Supreme Court Protects Industry from Unexpected Tariff Hikes by State Board
9Sep By The Legal ChamberNo Comments
Supreme Court

Promises Must Be Kept: Supreme Court Protects Industry from Unexpected Tariff Hikes by State Board

The Supreme Court held that the electricity board was estopped from resiling from its contractual obligation to provide a concessional tariff after having sanctioned, agreed, and partially implemented it. The board's unilateral withdrawal of the concession after over two years was deemed arbitrary, illegal, and unsustainable in law. Facts Of The Case: The appellant, an existing industrial unit with a Low Tension (LT) power connection, underwent significant expansion by installing a large induction furnace, which necessitated a High Tension (HT) or bulk power supply. It applied for this new connection in 1998. The respondent electricity board, after inspection, sanctioned the HT connection via a memo that explicitly stipulated the appellant’s eligibility for a 25% concessional tarif...
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Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale
6Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale

The Supreme Court held that the plaintiff failed to prove the existence of a valid sale agreement, a prerequisite for specific performance under Man Kaur v. Hartar Singh Sangha. The burden of proof was not discharged as the sole evidence was self-serving and key witnesses were not examined. The High Court's reversal of concurrent factual findings was erroneous. Facts Of The Case: The respondents (original plaintiffs) filed a suit for specific performance of an alleged sale agreement dated 12.02.1999, claiming the appellant (defendant) had agreed to sell his house for Rs. 70,000. They asserted having paid Rs. 55,000 as advance and taken possession, subsequently renting the property back to the appellant. The appellant contested the suit, denying any agreement to sell. His defense was that...
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Landmark Judgment: Supreme Court Orders Eviction of Bidder Who Failed to Pay for 3 Decades
16Aug By The Legal ChamberNo Comments
Supreme Court

Landmark Judgment: Supreme Court Orders Eviction of Bidder Who Failed to Pay for 3 Decades

The Supreme Court upheld the Tamil Nadu Housing Board's cancellation of allotment due to the respondent's chronic default in payment over decades. The Court emphasized that public property must be managed transparently and in the public interest, rejecting the respondent's claims. It ruled that prolonged non-payment justified eviction, denying further indulgence and ordering possession to be surrendered within four months. The judgment reinforced that contractual obligations must be honored and that courts cannot indefinitely protect defaulters at the cost of public welfare. Facts Of The Case: In 1986, the Tamil Nadu Housing Board auctioned a prime commercial plot in Chennai, with S. Ganesan emerging as the highest bidder at ₹4,78,921. Despite the Board's acceptance of his bid, Gan...
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Civil Dispute, Not Crime: SC Quashes FIR Against Businessman Calls It a Contract Issue
1May By The Legal ChamberNo Comments
Supreme Court

Civil Dispute, Not Crime: SC Quashes FIR Against Businessman Calls It a Contract Issue

The Supreme Court quashed an FIR alleging cheating (Section 420 IPC) and criminal breach of trust (Section 406 IPC), holding that unpaid export transactions constituted a civil dispute, not a criminal offense. The Court emphasized that mere breach of contract, without dishonest intent at inception, cannot attract criminal liability. It ruled that the exporter (M/s. Oswal Overseas), not the accused, was the entrusted party, and the complainant failed to establish fraudulent inducement or entrustment under Sections 405/415 IPC. The judgment reaffirmed that criminal proceedings cannot remedy purely contractual disputes. Facts Of The Case: The case involved a business dispute between Ashok Kumar Jain (appellant), director of a Sri Lankan export-import firm, and a Gujarat-based textile trader...
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