Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2013 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 166 - HC - Indian LawsCompliance of terms of agreement - petition for seeking unconditional leave to defend the present suit - the plaintiff was licensed to use the brand name INDANA on payment of monthly license fee for a period of two years. The plaintiff paid a refundable security deposit of Rs. 50,00,000/- to the defendant as interest free security deposit in terms of the said agreement, which was to be refunded at the time of determination of the aforesaid agreement. Every agreement has to be read as a whole and the meaning of a clause has to be gathered from a reading of the entire agreement. The first part of the same clause mentions that Rs. 50,00,000/- is deposited as “security deposit..... for due performance of the agreement". At this stage all the court has to examine whether if the facts as alleged by the defendant if duly proved, would afford a good and plausible defence to the plaintiff's claim. The relevant question would be whether the security amount has secured its end and is liable to be refunded/returned. The answer to this lies in the adjudication of dispute, i.e., whether there was due performance and/or violation of the agreement by plaintiff or defendant and its consequential effect on the rights and liabilities of both the parties inter se. All these issues are questions of fact which can only be established by way of trial once both the parties have led their evidence. Present application is allowed and defendant is granted unconditional leave to defend the suit.
|