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AIR 2014 SUPREME COURT 1 ::2013 AIR SCW 6082
Supreme Court Of India
(From : Kerala)
Hon'ble Judge(s): Chandramauli Kr. Prasad, V. Gopala Gowda , JJ

(A) Contract Act (9 of 1872) , S.56— Doctrine of frustration of contract - Applicability - Statutory contract specifying consequences of non-performance - Party cannot take shelter behind doctrine of frustration. The doctrine of frustration excludes ordinarily further performance where the contract is silent as to the position of the parties in the event of performance becoming literally impossible. However, a statutory contract in which party takes absolute responsibility cannot escape liability whatever may be the reason. In such a situation, events will not discharge the party from the conseqence of non-performance of a contractual obligation. Further, in a case in which the consequences of non-performance of contract is provided in the statutory contract itself, the parties shall be bound by that and cannot take shelter behind Section 56 of the Contract Act.(Para 13) (B) Contract Act (9 of 1872) , S.16— Contract - Doctrine of fairness - Cannot be invoked to alter, amend or vary terms of contract - Be it statutory contract - Contract granting privilege to trade in liquor - R. 5 (15) providing for forfeiture of earnest deposit in case of breach of terms of contract - Not liable to be struck down on ground of being unreasonable. Kerala Abkari Act (1 of 1977) , S.29— ....

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