Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2013 (10) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 955 - SUPREME COURTRefund Claim - Auction sale - Kerala Abkari Shops (Disposal in Auction) Rules – Doctrine of Frustration – Statutory Contract - Validity of the judgment whereby the Division Bench held that the State was entitled to forfeit the entire deposited amount - Whether the appellant could invoke the doctrine of frustration or impossibility or whether she will be bound by the terms of the statutory contract – Held that:- On the failure of the auction purchaser to execute the agreement whether temporary or permanent, the deposit already made by auction purchaser towards earnest money and security money shall be forfeited - The appellant was declared as auction purchaser and she had deposited 30% of the bid amount in terms of Rule 5(10) of the Rules. 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 consequence of non-performance of a contractual obligation - 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 - Rule 5(15) in no uncertain terms provides that “on the failure of the auction purchaser to make such deposit referred to in subrule 10” or “execute such agreement temporary or permanent” “the deposit already made by him towards earnest money and security shall be forfeited to Government” - the appellant had not carried out several obligations as provided in sub-rule (10) of Rule 5 and consequently, by reason of sub-rule (15), the State was entitled to forfeit the security money - In a contract under the Abkari Act and the Rules made thereunder, the licensee undertakes to abide by the terms and conditions of the Act and the Rules made thereunder which are statutory and in such a situation, the licensee cannot invoke the doctrine of fairness or reasonableness – Decided against Assessee.
|