termination notice - The Legal Chamber

This Supreme Court judgment clarifies that validly terminated contracts do not constitute "assets" of a corporate debtor under the IBC, and its moratorium does not revive extinguished rights. It reaffirms that NCLT cannot interfere with terminations based on pre-existing, non-insolvency-related defaults. Furthermore, High Courts retain constitutional jurisdiction to direct statutory authorities, even during moratorium. Facts Of The Case: The dispute originated from a 2005 Development Agreement between Kher Nagar Sukhsadan Co-operative Housing Society and developer AA Estates for redevelopment of a dilapidated Mumbai building declared dangerous under municipal laws. The agreement required completion within 24 months, but the developer failed to meet this timeline. A Supple...

The Supreme Court held that the High Court exceeded its jurisdiction under Section 100 CPC by interfering with the first appellate court's findings of fact, particularly regarding additional payment and the plaintiff's readiness and willingness. The Court reiterated that time is not ordinarily the essence in immovable property contracts and that acceptance of further payment post-deadline constitutes a waiver of the right to forfeit earnest money, making the suit for specific performance maintainable without a separate declaratory relief. Facts Of The Case: The appellant, Annamalai, entered into a registered sale agreement dated 08.01.2010 with Saraswathi (D-1) and Dharmalingam (D-2) for two property items. The total consideration was Rs. 4,80,000, of which Rs. 4,70,000 was paid as a...