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State Of West Bengal vs M/S. B. K. Mondal And Sons on 5 December, 1961

"14. It is plain that three conditions must be satisfied before this section can be invoked. The first condition is that a person should lawfully do something for another person or deliver something to him. The second condition is that in doing the said thing or delivering the said thing he must not intend to act gratuitously; and the third is that the other person for whom something is done or to whom something is delivered must enjoy the benefit thereof. When these conditions are satisfied Section 70 imposes upon the latter person the liability to make compensation to the former in respect of, or to restore, the thing so done or delivered. In appreciating the scope and effect of the provisions of this section it would be useful to illustrate how this section would operate. If a person delivers something to another it would be open to the latter person to refuse to accept the thing or to return it; in that case Section 70 would not come into operation. Similarly, if a person does something for another it would be open to the latter person not to accept what has been done by the former; in that case again Section 70 would not apply. In other words, the person said to be made liable under Section 70 always has the option not to accept the thing or to return it. It is only where he voluntarily accepts the thing or enjoys the work done that the liability under Section 70 arises. Taking the facts in the case before us, after the respondent constructed the warehouse, for instance, it was open to the appellant to refuse to accept the said warehouse and to have the benefit of it. It could have called upon the respondent to demolish the said warehouse and take away the materials used by it in constructing it; but, if the appellant accepted the said warehouse and used it and enjoyed its benefit then different considerations come into play and Section 70 can be invoked. Section 70 occurs in Chapter V which deals with certain relations resembling those created by contract. In CS (OS) 215/2019 Page 11 of 20 other words, this chapter does not deal with the rights or liabilities accruing from the contract. It deals with the rights and liabilities accruing from relations which resemble these created by contract. That being so, reverting to the facts of the present case once again, after the respondent constructed the warehouse it would not be open to the respondent to compel the appellant to accept it because what the respondent has done is not in pursuance of the terms of any valid contract and the respondent in making the construction took the risk of the rejection of the work by the appellant. Therefore, in cases falling under Section 70 the person doing something for another or delivering something to another cannot sue for the specific performance of the contract nor ask for damages for the breach of the contract for the simple reason that there is no contract between him and the other person for whom he does something or to whom he delivers something. All that Section 70 provides is that if the goods delivered are accepted or the work done is voluntarily enjoyed then the liability to pay compensation for the enjoyment of the said goods or the acceptance of the said work arises. Thus, where a claim for compensation is made by one person against another under Section 70, it is not on the basis of any subsisting contract between the parties, it is on the basis of the fact that something was done by the party for another and the said work so done has been voluntarily accepted by the other party. That broadly stated is the effect of the conditions prescribed by Section 70."
Supreme Court of India Cites 22 - Cited by 164 - P B Gajendragadkar - Full Document

Mahanagar Telephone Nigam Limited vs Tata Communication Limited on 27 February, 2019

25. The remedy sought by the Plaintiff in this suit, though quite creative, would not be maintainable inasmuch as the agreement between the Plaintiff and ITNL is subsisting and has not been terminated. The Plaintiff has executed the works for ITNL, even though NHIDC may have indirectly benefited from the same. The contracts may be back-to-back in nature, but the Plaintiff cannot by-pass its existing contractual relationship with ITNL. As held by the Hon‟ble Supreme Court in Food Corporation of India & Ors. (supra) and Mahanagar Telephone Nigam Ltd. v. Tata Communications Ltd., [Civil Appeal No. 1766/2019, decided on 27th February, 2019], Section 70 falls in that Chapter of the Indian Contract Act,1872 which deals with relationships which resemble contracts. In that sense, the provision belongs to the category of quasi contracts and restitution.
Supreme Court of India Cites 16 - Cited by 17 - R F Nariman - Full Document

Food Corporation Of India & Ors vs Vikas Majdoor Kamdar Sahkari Mandli Ltd on 12 November, 2007

25. The remedy sought by the Plaintiff in this suit, though quite creative, would not be maintainable inasmuch as the agreement between the Plaintiff and ITNL is subsisting and has not been terminated. The Plaintiff has executed the works for ITNL, even though NHIDC may have indirectly benefited from the same. The contracts may be back-to-back in nature, but the Plaintiff cannot by-pass its existing contractual relationship with ITNL. As held by the Hon‟ble Supreme Court in Food Corporation of India & Ors. (supra) and Mahanagar Telephone Nigam Ltd. v. Tata Communications Ltd., [Civil Appeal No. 1766/2019, decided on 27th February, 2019], Section 70 falls in that Chapter of the Indian Contract Act,1872 which deals with relationships which resemble contracts. In that sense, the provision belongs to the category of quasi contracts and restitution.
Supreme Court of India Cites 2 - Cited by 27 - A Pasayat - Full Document

M/S.Essar Oil Ltd vs Hindustan Shipyard Ltd. & Ors on 2 July, 2015

19. Mr. Ramji Srinivasan, ld. Sr. Counsel appearing for the applicants, submits that upon the value of work done being ascertained, the payments have to be received by the applicants and not directly by the Plaintiff. The Plaintiff cannot by-pass the insolvency proceedings by filing the present civil suit. Ld. Sr. Counsel thus submits that either the suit be dismissed and the Plaintiff be directed to approach the NCLAT or the applicants be impleaded. He relies upon the judgment of the Hon‟ble Supreme Court in Essar Oil Ltd. v. Hindustan Shipyard Ltd., (2015) 10 SCC 642 to argue that since there is no privity of contract between the Plaintiff and the Defendant, the Plaintiff cannot hold up any payments which the applicants are entitled CS (OS) 215/2019 Page 8 of 20 to receive. The only remedy available to the Plaintiff is to get itself impleaded in the insolvency proceedings pending against ITNL.
Supreme Court of India Cites 1 - Cited by 23 - A R Dave - Full Document
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