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August 2018

Corporate Amicus: June 2018

by Akshita Alok

Understanding ‘Substituted Performance’ under the Specific Relief (Amendment) Bill, 2018

Specific Relief (Amendment) Bill, 2018 introduces a new concept of “substituted performance” by proposing to amend certain provisions of the Specific Relief Act, 1963. The amendment seeks to make specific performance a rule, rather than an exception. This is done by giving the promisee (the aggrieved party), a right to have the (breached) contract performed through a third party or by his own agency. The promisee can then recover the expenses and other costs incurred for such ‘substituted performance’ from the promisor (the defaulter). Deliberating upon the position at present, where though the remedy of substituted performance is available to the aggrieved party but the enforcement is limited, the amendment looks promising as it is bound to result in a change in contract behaviour between parties and encourage performance of contract obligations. Further, compared to other foreign jurisdictions, the proposed provision is more elaborate both in procedure and substance. It is felt that though the impact will be pan-industry, industries like construction and infrastructure, where damages often do not adequately compensate breach of contract, will benefit the most...

 

Notifications and Circulars

  • Companies Act, 2013 – 28 Sections of Companies (Amendment) Act 2017 brought into force from 7-5-2018
  • ECB - Reserve Bank of India relaxes guidelines for External Commercial Borrowings
  • Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Ordinance, 2018

 

Ratio decidendi

  • Insolvency proceedings to be initiated when financial debt proven and corporate debtor having no objection – NCLT, New Delhi
  • Reference to arbitration when one of the agreements not containing arbitration clause – Supreme Court
  • Cognizance of foreign decree in insolvency proceedings – NCLT, Chennai

 

June, 2018/Issue-81 June, 2018/Issue-81

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