The bench consists of Justice L Nageswara Rao and Justice BR Gavai observed section 21 of Specific Relief Act states that when it’s become impossible to perform the contract, it’s necessary to provide compensation in relation to contract at place of specific performance.
The court dismissed the prayer of the appellant for damages in two civil appeals. The appellant entered into an agreement with the German company and through supplementary agreement they had taken the approval from the Reserve Bank of India.
There was two company hold by two respondent former company was the holding company of the latter. The approval was taken lapsed due to time, then they applied for extension of time from government. The government then extended the time.
The termination notice on the appellant was issued by the 3rd respondent due to lapse of time. It states that under clause 5 and no further time extended.
Due to which the appellant filed the civil suit in the court. he filed suit for specific performance in the court.