13 May 2021, Thursday

3 years ago

Unless the parties consciously agree to waiver application of §12(5) of ACA, it is non-derogable and mandatory (Delhi High Court)

13 May 2021| Chhaya Rai and another v. KLJ Developers Private Limited | OMP (T) (COMM.) 4/2021C | Hari Shankar J

The Delhi High Court has stated that the ineligibility under Section 12 (5) ACA read with the Seventh Schedule can be waived consciously and expressly (citing JMC Projects (India) Pvt. Ltd. v. Indure Pvt. Ltd.,  MANU/DE/1609/2020). It cannot be deemed. Noting the 3-judge bench Supreme Court’s decision in Haryana Space Application Centre v. Pan India Consultants Pvt. Ltd., 2021 SCC OnLine SC 33, it added that Section 12 (5) ACA is non-derogable and mandatory.*

Read the judgment here.

Editor’s note: Section 12 (5) ACA should not be called mandatory because it can actually be waived!

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