Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Doctrine of Frustration Doctrine of Fairness |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | KERALA ABKARI SHOPS (DISPOSAL IN AUCTION) RULES, 1974: 5 (10), (15) and (19) - Auction purchaser failing to execute the agreement - Forfeiture of deposit - Held: In terms of sub-r. (15) of r. 5, security money deposited by auction 0 purchaser is liable to be forfeited. CONTRACT ACT, 1872:s. 56 - Contract to do act, afterwards becoming impossible - Doctrine of frustration - Statutory contract - Auction purchaser finding impossible to run abkari shops due to resistance by local residents, the area being a holy place - State also found it impossible to re-sell or re-dispose of abkari shops -- Held: 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, in a statutory contract in which party takes absolute responsibility, it 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 contractual obligation - - Further, in a case in which consequence of non-performance of contract is provided in statutory contract itself, parties shall be bound by that and cannot take shelter behind s. 56 - In the instant case, by reason of sub-r. (15) of r. 5 of 197 4 Rules, State was entitled to forfeit the security money -- In the face A of specific consequences having been provided, appellant shall be bound by it and could not take benefit of s.56 - Kerala Abkari Shops (Disposal in Auction) Rules, 1974 -- r. 5(15) - Doctrines/ Principles -- Doctrine of frustration - Doctrine of fairness.ADMINISTRATIVE LAW:Doctrine of fairness - Held: It is a doctrine developed in the administrative law field to ensure rule of law and to prevent failure of justice where an action is administrative in nature - Where the function is quasi-judicial, the doctrine of fairness is evolved to ensure fair action -- But, it certainly cannot be invoked to amend, alter, or vary an express term of the contract between the parties -- This is so even if the contract is governed by a statutory provision - Sub-r.(15) of r.5 of 1974 o Rules cannot be struck down on the ground of reasonableness and fairness -- Kerala Abkari Shops (Disposal in Auction) Rules, 1974 - r.5(15). |
Judge | Hon'ble Mr. Justice C.K. Prasad |
Neutral Citation | 2013 INSC 710 |
Petitioner | Mary |
Respondent | State Of Kerala And Ors, |
SCR | [2013] 9 S.C.R. 1126 |
Judgement Date | 2013-10-22 |
Case Number | 9466 |
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