Posts

Showing posts from November, 2022

Whether plea of Novation of contract can be determined at Section 11(6) stage?

Image
  Shubham Budhiraja [1]   (I)                    The court at the referral stage can interfere only when it is manifest that the claims are ex facie time barred and dead, or there is no subsisting dispute.   (II)                  Similar would be the position in case of disputed “no claim certificate” or defence on the plea of novation and “accord and satisfaction”.   (III)               Even if the performance of the contract has come to an end, the contract can still be in existence for certain purposes in respect of disputes arising under it or in connection with it. [2]         [1] Advocate, Delhi High Court [LLB, ACS, BCOM(H)], Budhirajalawchambers@gmail.com , +91-9654055315 [2] CIVIL APPEAL NO. 8818 OF 2022, 23/11/2022

Whether mortgaging the family property during pendency of a partition suit violates the undertaking of status quo in relation to title of aforesaid property?

Image
  Shubham Budhiraja [1]   Mr. A filed a partition suit against Mr. B. Undertaking given by Mr. B to maintain the status  w.r.t family properties and not to transfer the title during the pendency of suit. During the proceedings, Mr. A gets to know about Mr. B that it has mortgage the aforesaid property by deposit of title deeds. Mr. A filed Order 39 R2A against Mr. B alleging breach of undertaking. The Hon’ble High Court dismissing the application and has held that creating mortgage by deposit of title deed confers no transfer of legal title. Thus, there is no breach of undertaking. [2]   (I)                    Section 58 of the Transfer of Property Act provides for creation of mortgage by depositing title deed, but it is not necessary that the mortgagor would have forfeited is complete title over the property. The complete title over a property can be acquired by a vendee only when the Deed of Sale is executed and registered by the vendor in terms of Section 54 of the Transf

Whether the MSME Act,2006 overrides the Arbitration Act,1996?

Image
    Shubham Budhiraja [1]   Hon’ble Supreme Court of India in Gujarat State Civil Supplies corp. v. Mahakali Foods Pvt. Ltd ., Civil appeal no. 127 of 2018, Judgment dated 31/10/2022 has held that the MSME Act being a special law is enacted for the specific category of persons i.e. micro, small & medium buyers and suppliers whereas Arbitration & conciliation act is a general law of resolving dispute using alternative dispute mechanism. The Hon’ble Apex Court also held that private agreement between the parties agreeing for arbitration cannot override the statutory mandate of MSME Act. The MSME act imposes an obligation on the buyer to pay the due amount within the stipulated period falling which liability in nature of compound interest at 3 times of RBI interest rate. The MSME act confers on the supplier a special mechanism to recover such dues. Section 18 starts with non-obstante clause and overrides all other laws being in force. At the time of enactment of the MSME a