Search The Civil Litigator

Wednesday, October 13, 2010

Termination of Contract at will : no reason for termination

Classic Motors Ltd v. Maruti Udyog Limited, 1995 II AD (Delhi) 997; 57 (1995) DLT 677

termination without reason is improper

7 comments:

  1. Staffordshire Area Health Authority Vs. South Staffordshire Waterworks, Co.1978(3) All E.R. 769

    ReplyDelete
  2. Turnaround Logistics v. Jet Airways India (Delhi HC) 2006

    ReplyDelete
  3. Martin-Baker Aircraft Co. Ld. v. Canadian Flight Equipment Ld. Same v. Murison [1955] 2 Q.B. 556

    ReplyDelete
  4. Asia Publishing House v. John Wiley and Sons (1969)71BOMLR777

    ReplyDelete
  5. Indian Oil Corporation Ltd. v. Amritsar Gas Service (1991)1SCC533

    ReplyDelete
  6. Infinity Optimal Solutions Pvt. Ltd. v. Vijender, MANU/DE/2856/2009.

    ReplyDelete
  7. Rajasthan Breweries Ltd., AIR2000Delhi450, 2000(3)ARBLR509(Delhi), 2000(55)DRJ68

    "19. Even in the absence of specific clause authorising and enabling either party to terminate the agreement in the event of happening of the events specified therein, from the very nature of the agreement, which is private commercial transaction, the same could be terminated even without assigning any reason by serving a reasonable notice. At the most, in case ultimately it is found that termination was bad in law or contrary to the terms of the agreement or of any understanding between the parties or for any other reason, the remedy of the appellants would be to seek compensation for wrongful termination but not a claim for specific performance of the agreements and for that view of the matter learned Single Judge was justified in coming to the conclusion that the appellant had sought for an injunction seeking to specifically enforce the agreement. Such an injunction is statutorily prohibited with respect of a contract, which is determinable in nature. The application being under the provisions of Section 9(ii)(e) of the Arbitration and Conciliation Act, relief was not granted in view of Section 14(i)(c) read with Section 41 of the Specific Relief Act. It was rightly held that other clauses of Section 9 of the Act shall not apply to the contract, which is otherwise determinable in respect of which the prayer is made specifically to enforce the same."

    ReplyDelete