SC: Inability to get required permissions can’t imply agreement’s extension

Today, i.e. on 6thMarch 2019, in the matter of Urvashi Aggarwal (since deceased) Through LRs. & Anr. v. Kushagr Ansal (successor in interest of erstwhile Defendant No.1 Mrs. Suraj Kumari) & Ors., the Hon’ble Supreme Court pronounced that an agreement cannot be said to have been extended merely because on the date fixed for performance of the agreement, a party was still in the process of getting requisite permissions from authorities in order to fulfil his part.

The Hon’ble Supreme Court observed that:

Vendee cannot claim that the cause of action for filing the suit has not arisen on the date fixed in the contract on the ground that certain conditions in the contract have not been complied with. (Para 10)

On the date fixed for performance of an agreement, if a party was still in the process of getting requisite permissions from authorities in order to fulfil his part of the agreement, it cannot be said that the agreement stood extended. (This inference has been drawn on the basis of Para 11)

Copy of judgement: Judgement_06-Mar-2019

-Tushar Kaushik

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