Published on: May 21, 2024 20:43 IST
Court: Supreme Court of India
Case: Venkataraman Krishnamurthy v. Lodha Crown Buildmart (P) Ltd. 2024
Honourable Supreme Court of India has held that a person must comply with the terms and conditions of the valid contract. It is held where a condition is provided in a contract for payment of delay compensation and in the event of such delay the terms of contract would have to be complied with.
It is held that a party to the contract cannot seek reduction of the rate of interest contrary to the agreed rate as per the contract. It is held that in the event of breach of the Contract’s conditions by one or the other of the parties thereto, such consequences must necessarily follow and if resisted, they would be legally enforceable.
19. Once the parties committed themselves to a written contract, whereby they reduced the terms and conditions agreed upon by them to writing, the same would be binding upon them. In the event such a written contract provided for the consequences that are to follow in the event of breach of the conditions by one or the other of the parties thereto, such consequences must necessarily follow and if resisted, they would be legally enforceable.
In the case on hand, the agreement stipulated the date of delivery of possession of the apartment for fit outs with a grace period of one year. In terms thereof, the date for delivery of possession of the apartment for fit outs, with the grace period, was 30-6-2017. Admittedly, the respondent Company did not offer delivery of possession of the apartment for fit outs by that date.
Drafted By Abhijit Mishra