SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2006 Supreme(Cal) 643

High Court Of Calcutta
Pranab Kumar Deb, J.
BIJUL PHARMA-CHEM (P) LTD. - Appellant
Versus
E.R.SQUIBB AND SONS LLC - Respondent
C. O. 3287 Of 2005
Decided On : 09/27/2006

Advocates Appeared:
D.BASAK, P.N.MISHRA, PREETI AGARWAL, RANJAN BACHAWAT, S.GINODIA

A determinable contract cannot be specifically enforced after its lawful termination, and the aggrieved party's remedy is to seek damages for the loss sustained.

Headnote:

SPECIFIC RELIEF ACT - INJUNCTION - SECTION 14(1)(C) - EXTENSION OF CONTRACT AFTER TERMINATION - NOT PERMITTED - SPECIFIC PERFORMANCE - NOT ENFORCEABLE - DAMAGES - AVAILABLE REMEDY.

Fact of the Case:

Bijul Pharma-Chem (P) Ltd. filed a suit for declaration that the termination of an agreement with E. R. Squibb and Sons LLC was illegal and void. The Trial Court rejected the prayer for amendment of the plaint to incorporate a prayer for specific performance of the contract and refused to extend the interim order of injunction passed earlier. Bijul Pharma-Chem (P) Ltd. filed a revisional application challenging these orders.

Finding of the Court:

The agreement between the parties was determinable in nature and could be terminated by either party by providing 60 days' notice. E. R. Squibb and Sons LLC had issued a 60-day notice of non-renewal, and the termination was, therefore, valid. The Trial Court was correct in rejecting the prayer for amendment of the plaint and in refusing to extend the period of supply.

Issues: 1. Whether the termination of the agreement was illegal and void. 2. Whether the Trial Court erred in rejecting the prayer for amendment of the plaint. 3. Whether the Trial Court erred in refusing to extend the period of supply.

Ratio Decidendi: 1. The termination of the agreement was not illegal and void as it was in accordance with the terms of the agreement. 2. The Trial Court did not err in rejecting the prayer for amendment of the plaint as the contract was determinable in nature and could not be specifically enforced. 3. The Trial Court did not err in refusing to extend the period of supply as the contract was determinable in nature and could not be specifically enforced.

Final Decision: The revisional applications filed by Bijul Pharma-Chem (P) Ltd. are dismissed. The civil revisional application filed by E. R. Squibb and Sons LLC is disposed of as infructuous.

P. K. DEB, J.

( 1 ) THE two revisional applications being C. O. No. 4305 of 2005 and C. O. No. 866 of 2006 filed by the Bijul Pharma-Chem (P) Ltd. have been heard along with the revisional application being C. O. No. 3287 of 2005 filed by M/s. E. R. Squibb and Sons LLC. The revisional application being C. O. No. 4305 of 2005 has been directed against the order dated 28. 10. 05, whereby the petition under Order 6 Rule 17 CPC for amendment of the prayer portion of the plaint was rejected. The revisional application being No. 866 of 2006 was directed against the order dated 28. 02. 06 passed by the learned District Judge in Misc. Appeal No. 237 of 2004, whereby the prayer for extension of the period of supply was rejected. The revisional application being No. 3287 of 2005 was filed by M/s. Squibb and Sons LLC challenging the order dated 12th May, 2005, in Misc. Appeal No. 237 of 2004, whereby the learned District Judge, Howrah was pleased to extend the period of supply of goods in terms of the contract for a period of four months to the extent of letter of credit.

( 2 ) APPEARING on behalf of Bijul Pharma-Chem (P) Ltd. in revisional application No. 4305 of 2005 and revisional application No. 866 of 2006, Mr. P. N. Mishra has submitted that in rejecting the prayer for amendment of the plaint for incorporating the relief of specific performance of contract and by refusing to extend the interim order of injunction passed in Misc. Appeal No. 237 of 2004, the learned Court placed undue importance on clause 5 of the agreement made between the petitioner and the respondent without properly appreciating the relevant provision contained in Clause 20 of the agreement. It is submitted that the respondent vide notice dated 31. 08. 04 intimated the petitioner that the Non-Exclusive Distribution agreement dated 23rd November, 2002 would come to an end on 22nd november, 2004 without assigning any reason whatsoever. It is submitted that the petitioner had placed orders for life saving Ostomy appliances worth us Dollar 67,640/ -. The illegal termination of contract in breach of the Clause 20 of the agreement, it is submitted, has caused untold hardship and suffering to cancerous Ostomates/patients for non-supply of life saving duty-free ostomy appliances. The termination of agreement for distribution and supply of Ostomy appliances was made, ignoring the acute demand of various cancer hospitals. Appreciating the acute need of supply of Ostomy appliances and considering the termination of contract to be highly illegal, the Hon'ble court in disposing of earlier revisional application directed continuation of the supply of Ostomy appliances. Judging the importance of uninterrupted supply of Ostomy appliances and illegality of the notice of the termination, the Appellate Court, it is submitted, earlier directed continuation of supply of Ostomy appliances for a stopgap period of four months to the extent of letter of credit. Side-stepping the principle of injunction, the Trial Court refused to extend the supply of goods till the disposal of the suit.

( 3 ) REFERRING to section 10 of the Specific Relief Act, it is argued that relief as sought for by the petitioner ought to have been granted in favour of the petitioner, inasmuch as there existed no standard for ascertaining the actual damage caused by the non-performance of the act agreed to be done. When the act agreed to be done is such that compensation in money for its non-performance would not afford adequate relief injunction ought to be granted. Citing the case of Central Inland Water Transport Corporation Ltd. vs. Brojo nath, reported in AIR 1986 SC 1571, it is submitted that in considering the application for injunction, the issue is to be looked from the point of view as to whether on refusal of injunction the plaintiff would suffer irreparable loss and injury. Balance of convenience or inconvenience ought to be considered as important requirement. The Court is required to consider as to wh




















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top