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2018 (8) TMI 830 - HC - Indian LawsFrustation of contract - Force Majeure - economic loss and un-viability of the contract due to loss in profit margins as a result of change in the policy - Net Trading Margin on Sale of Gold by PEC to be imported - 20:80 scheme of RB - whether with the change in the policy as made by the RBI circular dated 21st May, 2014, there is a cause of frustration of contract as contemplated in clause 7 of the tender document and/or Section 56 of the Contract Act? Held that:- In Naihati Jute Mills Ltd. vs. Khyaliram Jagannath, [1967 (10) TMI 66 - SUPREME COURT], it was held that a contract is not frustrated merely because the circumstances in which it was made are altered. The Courts have no general power to absolve a party from the performance of its part of the contract merely because its performance has become onerous on account of an unforeseen turn of events. There is no merit in the petition - petition dismissed.
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