AIR 2000 DELHI 450 ::(2000) 3 ArbiLR 509 ::(2000) 55 DRJ 68

Delhi High Court

Hon'ble Judge(s): Devinder Gupta, S. K. Agarwal , JJ

Specific Relief Act (47 of 1963) , S.16(c), S.41(e)— Specific performance - Cannot be made of a contract which is in its nature determinable - Application for such relief under S. 9 of Arbitration and Conciliation Act - Would not be maintainable under the circumstances. @page-Del451 Arbitration and Conciliation Act (26 of 1996) , S.9— The effect of breach of a contract by a party seeking to specifically enforce the contract under the Indian law is enshrined in Section 16(c) read with Section 41(e) of the Specific Relief Act, 1963. Clause (e) of Section 41 of the Specific Relief Act provides that injunction cannot be granted to prevent the breach of contract, the performance of which would not be specifically enforced. Clause (c) of Section 41 enumerates the nature of contracts, which could not be specifically enforced. Clause (c) to sub-section (1) of Section 14 says that a contract which is in its nature determinable cannot be specifically enforced.(Para 14) Agreements in the instant case are terminable by the respondent on happening of certain events. Even in the absence of specific clause authorising and enabling either party to terminate the agreement in the event of happening of the events specified therein, from the very nature of the agreement, which is private commercial transaction, the same could be ter....