Navayuga Machilipatnam Port Limited vs The State Of Andhra Pradesh, on 25 August, 2022
The plaintiff could not get
possession before declaration under Section 21 of the ULC
Act. Mr Dhanuka also contended that the agreement is not
19 RRR,J
W.P.No.12980 of 2019
determinable is clear from the conduct of original Defendant
1 and also what he stated in the affidavit-cum-declaration
dated 10-2-1978 about agreement not being terminable. The
contention of learned counsel is that what original Defendant
1 has said in the said document is his interpreting statement
which is admissible in law and this interpreting statement
and also his conduct, clearly shows that the agreement was
not terminable by original Defendant 1. Strong reliance has
been placed on Godhra Electricity Co. Ltd. v. State of
Gujarat [(1975) 1 SCC 199 : (1975) 2 SCR 42] in particular
on the following passage: (SCC pp. 205-06, para 11)
"11. In the process of interpretation of the terms of a
contract, the court can frequently get great assistance from
the interpreting statements made by the parties themselves
or from their conduct in rendering or in receiving
performances under it. Parties can, by mutual agreement,
make their own contracts; they can also by mutual
agreement remake them. The process of practical
interpretation and application, however, is not regarded by
the parties as a remaking of the contract; nor do the courts
so regard it. Instead, it is merely a further expression by the
parties of the meaning that they give and have given to the
terms of their contract previously made. There is no good
reason why the courts should not give great weight to these
further expressions by the parties, in view of the fact that
they still have the same freedom of contract that they had
originally. The American courts receive subsequent actings
as admissible guides in interpretation. It is true that one
party cannot build up his case by making an interpretation in
his own favour. It is the concurrence therein that such a
party can use against the other party. This concurrence may
be evidenced by the other party's express assent thereto, by
his acting in accordance with it, by his receipt without
objection of performances that indicate it, or by saying
nothing when he knows that the first party is acting on
reliance upon the interpretation."