AI Overview...
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Contract Period Curtailment - Several sources discuss the legality and validity of reducing or curtailing the duration of contracts. For instance, Alankit Assignments Limited VS Union of India - Delhi highlights that decisions to curtail contract periods must be based on valid considerations, and such decisions can involve extending arrangements or issuing new RFPs. Similarly, Alankit Assignments Limited vs Union of India - Delhi notes that unilateral decisions to reduce contract periods can be challenged as arbitrary, emphasizing the need for fairness and validity.
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Legal Validity of Curtailment Clauses - The Indian Contract Act, particularly Sections 23 and 28, plays a crucial role in assessing whether contractual provisions that seek to limit or shorten periods, such as limitation periods or contractual durations, are valid. National Insurance Company Limited VS Sujir Ganesh Nayak and Company - Rajasthan and Girdharilal Honuman Bux VS Eagle Star and British Dominions Insurance Co. Ltd. - Calcutta emphasize that agreements attempting to curtail the statutory limitation period or infringe upon rights protected by law are generally void under these sections.
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Limitation Periods and Contractual Restrictions - Several sources caution against agreements that seek to shorten limitation periods. Sodagar Singh VS Sham Kaur - Punjab and Haryana states that any voluntary agreement to limit the statutory period for filing suits is void under Section 28 of the Indian Contract Act, reinforcing that limitation periods cannot be lawfully curtailed by contract.
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Contract Continuity Despite Liquidation or Changes - JABAL C. LASHKARI VS OFFICIAL LIQUIDATOR OF PRASAD MILLS LTD. - Gujarat affirms that existing contracts continue to govern the parties despite liquidation or other changes, indicating that contractual obligations and durations are enforceable unless explicitly voided or modified lawfully.
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Implications of Curtailment on Rights and Remedies - The courts have scrutinized whether contract modifications or restrictions violate statutory rights or are arbitrary. Alankit Assignments Limited vs Union of India - Delhi and Navayuga Exports Ltd. , Visakhapatnam VS A. P. Mineral Development Corporation - Andhra Pradesh illustrate that unilateral or arbitrary curtailment of contract terms, including periods, can be challenged legally, especially if they violate principles of fairness or statutory provisions.
Analysis and Conclusion:
Contracts cannot lawfully contain clauses that attempt to arbitrarily or unlawfully curtail statutory rights, including limitation periods or contract durations, under Indian law. While parties can agree to extend or modify contractual periods, such modifications must be justified, fair, and compliant with the Indian Contract Act. Any attempt to unilaterally reduce contract periods or limitation durations without valid considerations or legal backing is likely to be deemed void and unenforceable. Courts consistently uphold the principle that statutory rights, including limitation periods, cannot be contracted away or shortened arbitrarily National Insurance Company Limited VS Sujir Ganesh Nayak and Company - Rajasthan, Sodagar Singh VS Sham Kaur - Punjab and Haryana.
References:
- Alankit Assignments Limited VS Union of India - Delhi, Alankit Assignments Limited vs Union of India - Delhi, JABAL C. LASHKARI VS OFFICIAL LIQUIDATOR OF PRASAD MILLS LTD. - Gujarat, Sesa Sterlite Limited VS BLR Logistiks (I) Ltd. - Bombay, Girdharilal Honuman Bux VS Eagle Star and British Dominions Insurance Co. Ltd. - Calcutta, Giridharilal Hanumanbux VS Eagle Star and British Dominions Insurance Co. , Ltd. - Calcutta, National Insurance Company Limited VS Sujir Ganesh Nayak and Company - Rajasthan, Navayuga Exports Ltd. , Visakhapatnam VS A. P. Mineral Development Corporation - Andhra Pradesh, JABAL C. LASHKARI vs O.L.OF PRASAD MILLS LIMITED - Gujarat, Sodagar Singh VS Sham Kaur - Punjab and Haryana
Search Results for "Contract Period Curtail"
2020 0 Supreme(Del) 852 • India - Delhi
NAVIN CHAWLA
to curtail the contract period was based on valid considerations. ... decision to curtail the period of the contract, extend the existing arrangement, and issue a fresh RFP. ... Issues: Validity of the decision to curtail the contract period, extend the existing arrangement, issue a fresh RFP, close ... The learned senior counsel for the petitioner had contended that the decision to curtail period#HL_END....
1923 0 Supreme(Cal) 329 • India - Calcutta
GREAVES, BUCKLAND
Ratio Decidendi: The Court found that the provision in the insurance policies did not curtail the period of limitation for ... a suit and did not infringe the Indian Contract Act. ... Act and was not void under Sections 23 and 28 of the Indian Contract Act. ... It is contended on behalf of the Plaintiffs that condition 13, as set out above, is void under the provisions of Sections 23 and 28 of the Indian Contract Act, 1872, as an attempt to curtail the period of limi....
2008 0 Supreme(Guj) 346 • India - Gujarat
M.S.SHAH, K.A.PUJ
Therefore, there is a subsisting contract and the parties would be governed by the terms of the contract. ... the Company(in liquidation) vis-a-vis the landlord do not undergo any change and they continue to be governed by the subsisting contract ... company has gone into liquidation the right of the company does not undergo any change and they continue to be governed by subsisting contract ... ... (Emphasis supplied) ... It is unfortunate that the aforesaid direct decision of a Three Judge Bench of the Apex Court squar....
2015 0 Supreme(Bom) 1342 • India - Bombay
R.M.SAVANT
filing the original or certified copy of the contract is diluted. ... had referred to the contract in the suit, acknowledging its existence. ... The petitioner sought to refer the parties to arbitration as per the arbitration clause in the contract. ... We reserved the right to curtail the above period and terminate the contract without assigning any reason thereof. ... D. Schedule of Rates and Payment terms : ... The rate schedule is shown in Annexure – 1. ... The contract#H....
• India - Delhi High Court
NAVIN CHAWLA
18, 20) ... ... Facts of the case: ... The petitioner challenged reductions in the term of a contract ... The learned senior counsel for the petitioner had contended that the decision to curtail period of the Contract to one year was arbitrary. ... The respondent has acted arbitrarily by issuing the Impugned Communication dated 04.04.2019 and thereby taking a unilateral decision to curtail the period of the contract to only one year. ... As far as the decision to #....
1923 0 Supreme(Cal) 306 • India - Calcutta
GREAVES, BUCKLAND
Insurance - Forfeiture of Benefits under Policy - Indian Contract Act, 1872 - Sections 23 and 28 - [4, 6, 7, 8, 9, 10, 11, 12, ... discussed the provisions of condition No. 13 of the insurance policies and its compliance with Sections 23 and 28 of the Indian Contract ... The court analyzed the validity of the forfeiture clause in the insurance policies in light of Sections 23 and 28 of the Indian Contract ... It is contended on behalf of the plaintiffs that condition 13, as set out above, is void under the provisions of Sections 23 and 28....
1997 0 Supreme(Raj) 273 • India - Rajasthan
A.M.AHMADI, K.S.PARIPOORNAN, SUJATA V.MANOHAR
... An agreement which in effect seeks to curtail the period of limitation ... of Sec. 28 of Contract Act – Scope – Curtailment of the period of limitation is not permissible u/s. 28 of Contract Act – Extinction ... and prescribes a shorter period than that prescribed by law would be void as offending section 28 of the Contract Act. ... From the case law referred to above the legal position that emerges is that an agreement which in effect seeks to curtail#H....
1998 0 Supreme(AP) 413 • India - Andhra Pradesh
C.V.N.SASTRY
towards the franchise amount for the extended period. ... of the petitioners for a further period of six months was accepted by the petitioners and the petitioners have also sent cheques ... tender-cum-public auction from the interested parties - Held, It is not in dispute that the offer made by the corporation for extending the contracts ... By force of the statute, the lease/franchise granted to the petitioner under the contract dated 26-11-1996 enures for a period of 20 years and that the respondents....
• India - Gujarat High Court
MR MOHIT .S.SHAH, K.A.PUJ, JJ
(Paras 28, 7.1, 7.4, 7.5) ... ... (B) Legal principles established include that a contract of ... that the lease services and rights persist despite winding up, asserting that the Bombay Rent Act provisions on eviction do not curtail ... (emphasis supplied) It is unfortunate that the aforesaid direct decision of a Three Judge Bench of the Apex Court squarely covering the controversy and holding that the provisions of the Rent Act do not curtail the contract period was not brought by the le....
1967 0 Supreme(P&H) 116 • India - Punjab and Haryana
R.S.NARULA
OFFICER FIXING TIME FOR FILING SUIT - JURISDICTION - CIVIL COURT CANNOT DISMISS SUIT AS BARRED BY TIME IF FILED WITHIN LIMITATION PERIOD ... Even a voluntary agreement to curtail the period of limitation for filing suit is declared to be void by Section 28 of the Contract Act. In this view of the matter, the decision of the Subordinate Judge, Patti dismissing the appellants suit as barred by time, is wholly untenable. ... by law even though it is instituted after the expiry of the period fixed by the Re....
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