Section 62. Effect of novation, rescission, and
alteration of contract.
If the parties to a contract agree to substitute a new
contract for it, or to rescind or alter it, the original contract
need not be performed.
Section 63. Promisee may dispense with or remit
performance of promise.- Every promisee may
dispense with or remit, wholly or in part, the performance
of the promise made to him, or may extend the time for
such performance, or may accept instead of it any
satisfaction which he thinks fit.”
14. Under Section 62, apart from novation of a contract and
rescission of a contract, alteration of a contract is mentioned.
Alteration is understood here, in the facts of the present case, in the
sense of amendment. It is settled law that an amendment to a
contract being in the nature of a modification of the terms of the
contract must be read in and become a part of the original contract in
order to amount to an alteration under Section 62 of the Indian
Contract Act. This is clear from Juggilal Kamlapat v. N.V.
Internationale Crediet-En-Handels Vereeninging ‘Rotterdam’, AIR
1955 Cal 65 in paragraph 15 of which it is stated:-
“The effect of the alterations or modifications is that there
is a new arrangement; in the language of Viscount
Haldane in Morris v. Baron & Co. (1) (1918 Appeal Cases,
1 at 17), “a new contract containing as an entirety the old
terms together with and as modified by the new terms
incorporated.” The modifications are read into and
become part and parcel of the original contract. The
original terms also continue to be part of the contract and
are not rescinded and/or superseded except in so far as
they are inconsistent with the modifications. Those of the
original terms which cannot make sense when read with
the alterations must be rejected. In my view the arbitration
clause in this case is in no way inconsistent with the
subsequent modifications and continues to subsist.” [para
15]
15. No such thing having occurred on the present facts, it is clear
that there is in fact no amendment by written agreement to the PPA.
To this extent, learned counsel for Sasan are correct.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.5881-5882 OF 2016
ALL INDIA POWER ENGINEER
FEDERATION & ORS.
V
SASAN POWER LTD. & ORS. ETC.
DATED: December 08, 2016.
Print Page
alteration of contract.
If the parties to a contract agree to substitute a new
contract for it, or to rescind or alter it, the original contract
need not be performed.
Section 63. Promisee may dispense with or remit
performance of promise.- Every promisee may
dispense with or remit, wholly or in part, the performance
of the promise made to him, or may extend the time for
such performance, or may accept instead of it any
satisfaction which he thinks fit.”
14. Under Section 62, apart from novation of a contract and
rescission of a contract, alteration of a contract is mentioned.
Alteration is understood here, in the facts of the present case, in the
sense of amendment. It is settled law that an amendment to a
contract being in the nature of a modification of the terms of the
contract must be read in and become a part of the original contract in
order to amount to an alteration under Section 62 of the Indian
Contract Act. This is clear from Juggilal Kamlapat v. N.V.
Internationale Crediet-En-Handels Vereeninging ‘Rotterdam’, AIR
1955 Cal 65 in paragraph 15 of which it is stated:-
“The effect of the alterations or modifications is that there
is a new arrangement; in the language of Viscount
Haldane in Morris v. Baron & Co. (1) (1918 Appeal Cases,
1 at 17), “a new contract containing as an entirety the old
terms together with and as modified by the new terms
incorporated.” The modifications are read into and
become part and parcel of the original contract. The
original terms also continue to be part of the contract and
are not rescinded and/or superseded except in so far as
they are inconsistent with the modifications. Those of the
original terms which cannot make sense when read with
the alterations must be rejected. In my view the arbitration
clause in this case is in no way inconsistent with the
subsequent modifications and continues to subsist.” [para
15]
15. No such thing having occurred on the present facts, it is clear
that there is in fact no amendment by written agreement to the PPA.
To this extent, learned counsel for Sasan are correct.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.5881-5882 OF 2016
ALL INDIA POWER ENGINEER
FEDERATION & ORS.
V
SASAN POWER LTD. & ORS. ETC.
DATED: December 08, 2016.
Citation:(2017) 1 SCC 487
