Vale Australia Pty Limited vs Steel Authority Of India Limited & Anr. on 30 March, 2012
29. There were two specific submissions by Vale and AMCI in this regard.
One was that by extending the time for performance of the contract SAIL had
dispensed with requirement for timely performance of the contract.
Reference was made to Sections 55 and 63 of the Contract Act by pointing
out that there was no avoidance of the contract by SAIL, which in the
circumstances was one option available to it. Reliance is placed on the
decisions in Muhammad Habidullah v. Bird & Co. AIR 1922 Privy Council
178; Kailash Nath and Associates v. Delhi Development Authority 2007
(98) DRJ 9; Aryan Mining and Trading Corporation Ltd. v. B. N. Elias &
Co. AIR 1959 Cal 472; Manni Lal v. Nihal Chand AIR 1930 Oudh 417;
Shriram Pistons v. Buckeye Machines 136 (2007) DLT 254; Hind
Construction v. State of Maharashtra (1979) 2 SCC 70 and Arosan
Enterprises v. Union of India (1999) 9 SCC 449. Secondly, it is submitted
O.M.P. 414/2011 with O.M.P. 415/2011 and O.M.P. 451/2011 Page 17 of 46
that Section 63 of the Contract Act does not require any bilateral agreement
for dispensation of performance. It entitles a promisee to dispense with strict
performance of the contract and the promisor would then not be held liable
for non- performance of the original obligation.