17 December 2021, Friday

2 years ago

Not every contract that has a termination clause is determinable: Delhi High Court

8 November 2021 | DLF Home Developers Limited v. Shipra Estate Limited | OMP (I) (Comm.) 209 of 2021 | Vibhu Bakhru J | Delhi High Court | 2021 SCC OnLine Del 4902

In yet another decision the Delhi High Court considered the question what is contract determinable in its nature? To recall, Section 14 (d) of the Specific Relief Act provides that a determinable contract is not specifically enforceable. The question was considered by Vibhu Bakhru J in Golden Tobacco (read here) and by C Hari Shankar J in ABP Network (read here).

Bakhru J has now reiterated his views after a survey of the case laws that not every contract that has a termination clause but only contracts that can be terminated by the parties at will, or by reasonable notice, are determinable.

He has also examined the scope of Section 9 ACA after referring to a number of case laws. Ruling prima facie on several issues involved in the case, Bakhru J directed order of status quo on the title and possession of the property that was the subject matter of an agreement to sell.

Read the judgment here.

BACK Next

connect with us: