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Sunday, April 10, 2011

Account of Profits

in case of breach of fiduciary duty


K.C. Skaria vs. The Govt. of State of Kerala, AIR 2006 SC 811


in case of breach of contract


Attorney General v. Blake, 2004 All ER (HL)





Frustration of contract:Onus of proof

Only if the party pleads frustration, will the other party get to plead and prove that frustration was due the the breaching party's neglect, default or self-induced. Sri Amuruvi v. KR Sabhapathi, AIR 1962 Mad 132; Dinanath v. Premchand, MANU/MP/0120/1956; VL Narasu v. PSV Iyer, AIR 1953 Mad 300

Court will not interfere so long as arbitrators view is a possible one and it remains within the terms of contract

NHAI v. Unitech-NCC Joint Venture, MANU/DE/2176/2010; McDermott International v. Burns Standard Co. Ltd, (2006) 11 SCC 181

Pleadings to be liberally construed


 Bismillah v. Janeshwar Prasad (1990) 1 SCC 207 (para 9); Ram Sarup Gupta v. Bishun Narain Inter College, AIR 1987 SC 1242;  Smt. Kalawati Tripathi v. Smt. Damayanti Devi, AIR1993 Pat 1 (para 13)

Courts cannot decide outside pleadings

(Gajanan Krishnaji Bapat and Anr. v. Dattaji Raghobaji Meghe, AIR 1995 SC 2284; Kalyan Singh Chouhan v. C.P. Joshi, JT 2011 (2) SC 97).  It is not permissible for the court (and also arbitral tribunal) to travel beyond the pleadings

Unilateral mistake - misunderstanding scope of contractual obligations


Dhulipudi Namayya v. Union of India, AIR 1958 AP 533 and State of Andhra Pradesh v. Pioneer Builders, 1999 (3) ALD 140 which relied on Hillas & Co. v. Arcos Ltd., (1932) All ER 494.  Pioneer in Appeal  (AIR 2007 SC 113) reversed on other grounds. This was untouched.