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114. In this case, the 1st respondent had expressed its unwillingness to perform it obligation under the Contract and was looking for an exit route. The Petitioner was therefore entitled to terminate the contract, which it did. Therefore, the consequences under Section 64 of the Contract Act, 1872 awaits the parties. Under Section 64 of the Indian Contract Act, 1872, a person at whose option a contract is voidable rescinds it, the other party need not need not perform any promise contained therein in which he is promisor. Thus, the 1st respondent was not obliged to execute the balance work.

115. In fact, the party who rescinds the contract is bound to compensate the other person if it had received any benefit from the other party and restore such benefit as per Section 64 of the Indian Contract Act, 1872. Section 64 of the Indian Contract Act, 1872 which deals with the consequences of rescinding a contract voidable at the instance of a party reads as under :-

“64. Consequences of rescission of voidable contract.— When a person at whose option a contract is voidable _____________ https://www.mhc.tn.gov.in/judis Arb.O.P.(Com.Div.) No.631 of 2022 rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding a voidable contract shall, if he have received any benefit thereunder from another party to such contract, restore such benefit, so far as may be, to the person from whom it was received.”