Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Lease agreement Decision by UAHCL to terminate the LOI |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Lease: Lease agreement – Execution of – On facts, lease agreement to be entered into between UAHCL and appellant pursuant to the compliance of the Letter of Intent (LOI) – In terms of the LOI, the appellant was to pay Rs 9.34 crore within the stipulated period, however, the appellant failed to do so – Also full payment not made within the extended period and also subsequent to the extended period – Decision by UAHCL to terminate the LOI – Writ petition by the appellant seeking quashing of the said letter to terminate LOI – High Court held that the disputed questions of fact involved could not be gone into in the writ jurisdiction and relegated the parties to an appropriate forum – On appeal, held: Appellant having failed to adhere to the terms indicated in the LOI and the payment required thereunder not being made even within the extended period, the decision of UAHCL to terminate the LOI is justified – Thus, termination of LOI is upheld – Directions sought to execute the lease agreement does not arise – As regards the refund of the amount paid, the word employed is not “forfeiture”, thus, the amount payable towards the advance lease rentals and the other advance payments provided in the LOI, cannot be forfeited if there is default in complying with the term – Amount of Rs.4.41 crores paid within the stipulated period, cannot be forfeited – It is an amount which would be available for accounting – More so, due to the conduct of the appellant, UAHCL was unable to utilise the property but on the other hand had to incur expenses and suffered actual loss – In the interest of justice, UAHCL permitted to retain the amount paid within the time frame – Liberty granted to the appellant to file suit seeking recovery ofthe said amount – Amount paid after the extended date cannot be retained by UAHCL since it would amount to unjust enrichment – Issuance of direction to UAHCL to refund the said amount deposited by the appellant. |
Judge | Hon'ble Mr. Justice Ajjikuttira Somaiah Bopanna |
Neutral Citation | 2021 INSC 600 |
Petitioner | Infrastructure Private Limited |
Respondent | The State Of Orissa & Ors. |
SCR | [2021] 6 S.C.R. 1040 |
Judgement Date | 2021-10-04 |
Case Number | 6023 |
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