The main issue which is involved in the present case is whether YDPL is liable to pay Rs. 30,00,000?
Every contract which is made by parties is based upon mutual trust and confidence and every party to contract gives his consent on a belief that every party to contract will perform his contractual obligation. But if any party fails to perform his contractual obligation, then another aggrieved party has right to claim compensation or recover the amount spent by that party from wrongdoer.
If any party who is an aggrieved agrees to take some amount less than the actual amount, then in such a case, after the settlement, that party cannot claim the remaining amount which he agreed to remit.
Section 63 of the Indian Contract Act, 1872, deals with the provisions of remission of part of promise. According to this section, if any party to the contract agrees to accept the lesser amount in satisfaction of the whole claim, then after the settlement, he cannot claim the remaining amount.
In the leading case of Amarnath vs. Bharat Heavy Electricals, the Hon’ble court held that the promise has been authorised by section 63 to remit or dispense with the performance of contract without any consideration. He may fully forgo his claim or may agree to a smaller amount in the full satisfaction of the whole amount.
In the present case, JTL agreed to accept Rs. 20,00,000 instead of Rs. 30,00,000. According to abovesaid legal provisions and case law, he cannot claim rest of the amount because he himself forgone the remaining amount. Hence YDPL is liable to pay only Rs. 20,00,000…..

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‘X’ holds a land in Bihar on a lease granted by ‘Z’ the landlord. The revenue payable by ‘Z’ to the Government being in arrear, the land is advertised for sale by government. Under the revenue law, the consequence of such sale, will be annulment of the lease of ‘X’. ‘X’ to prevent sale, pays to the government the sum due from ‘Z’. Is ‘Z’ liable to make good to ‘X’.
The main issue which is involved in the present case is whether ‘X’ is entitled to recover the amount of tax paid by him from ‘Z’.

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A company agreed to supply one thousand blankets to ‘X’ by a particular date. Rs. 10,000 were paid as an advance to the company by ‘X’. Before the due date of performance of the contract, the company informed that it would not supply blankets on due date and that he should treat the contract as repudiated. ‘X’ did not accept the repudiation and kept on demanding the supply till the last date/ due date of performance of the contract. In the meantime, war between India and China broke out and all the stocks of the company were requisitioned by government for military purposes. ‘X’ files a suit against the company for damages for breach of contract. Will he succeed? Decide by referring to the provisions of the Indian Contract Act, 1872, and decided cases…..

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