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Bangalore Electricity Supply Company ... vs Es Solar Private Limited on 3 May, 2021

5. An agreement that is enforceable by law is a contract. It comprises the joint intent of the parties and is in the realm of private law. The MOU also clarifies that it is not a statutory contract. It has hence to be understood by the intent of the parties to the contract. The Apex Court in Bangalore Electricity Supply Company Limited (BESCOM) Vs E.S. Solar Power Pvt. Ltd. & Ors. [Civil Appeal No. 9273 of 2019 / dated 03/05/2021], has summarized the broad principles Authorities should follow while interpreting contracts. Referring to various judgments, the Court held:
Supreme Court of India Cites 15 - Cited by 10 - L N Rao - Full Document

Smt. Kamala Devi vs Seth Takhatmal And Another on 21 February, 1963

16. The duty of the Court is not to delve deep into the intricacies of human mind to explore the undisclosed intention, but only to take the meaning of words used i.e. to say expressed intentions (Smt. Kamala Devi vs. Seth Takhatmal & Anr - 1964 (2) SCR 152). In seeking to construe a clause in a Contract, there is no scope for adopting either a liberal or a narrow approach, whatever that may mean. The exercise which has to be undertaken is to determine what the words used mean. It can happen that in doing so one is driven to the conclusion that clause is ambiguous, and that it has two possible meanings. In those circumstances, the Court has to prefer one above the other in accordance with the settled principles. If one meaning is more in accord with what the Court considers to the underlined purpose and intent of the contract, or part of it, than the other, then the court will choose former or rather than the later.
Supreme Court of India Cites 11 - Cited by 24 - Full Document

Bank Of India & Anr vs K.Mohandas & Ors on 27 March, 2009

Bank of India and Anr. V. K. MohanDas and Ors [2009 5 SCC 313]. Every contract is to be considered with reference to its object and the whole of its terms and accordingly the whole context must be considered in endeavoring to collect the intention of the parties, even though the immediate object of inquiry is the meaning of an isolated clause. Bihar State Electricity Board, Patna and Ors. v. M/s. Green Rubber Industries and Ors [1990 (1) SCC 731].
Supreme Court of India Cites 22 - Cited by 203 - R M Lodha - Full Document
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