Case Details

Citation(s)
1960 SLG 423 1960 SLD 423 1960 PLD 308
Dacca High Court
Matter No. 12 A of 1956, decision dated: 22-03-1957.
RAHMAN, JUSTICE
Mazhar Hasnain for Petitioner. A. Hossain for the Official Liquidator. Syed A. B. Mahmud Hussain for the Registrar, Joint Stock Companies.

CHANDPUR MILLS

VS

THE OFFICIAL LIQUIDATOR, ECONOMIC AID CORPORATION LTD. (IN LIQUIDATION) OPPOSITE PARTY

Law:

Section:

(a) Contract Act (IX of 1872), S. 56 Frustration, doctorine of When applicable Whether applicable to demise of land¬-Seizure or sealing by police of tenancy premises as result of unlawful action of party to contract Doctrine not invocable. "Frustration may be defined as premature' determination of an agreement between parties, lawfully entered into and in course of operation at the time of its premature determination, owing to the occurrence of an intervening event or change of circumstances so fundamental as to be regarded by the law both as striking at the root of the agreement and as entirely beyond what was contemplated by the parties when they entered into the agreement. If therefore, the intervening circumstance is one which the law would not regard as so fundamental as to destroy the basis of the agreement there is no frustration. Equally if the terms of the agreement show that the parties contemplated the possibility of such an intervening circumstance arising frustration does not occur. Neither of course, does it arise where one of the parties has deliberately brought about the supervening event by his own choice." Thus in order to invoke the doctrine of frustration the first and the most important condition is to show that such an interfer¬ence, by some authority or circumstance beyond the control of the parties, has taken place as to have made it impossible to continue with the contract by destroying the very basis of the contract itself or striking at its root. But if the supervening difficulty or event has been deliberately brought about by the choice of one of the contracting parties, there is no room for the invocation of the doctrine of frustration. Cricklewood Property and Investment Trust Limited v. Leighton's Investment Trust Limited L R 1945 A C 221 ref. Whether or not, the doctrine applies to demise of land, if during the subsistence of a contract of tenancy, the premises are seized by the police during the pendency of a prosecution s and the seizure by the police is brought about by the misdeeds of the tenant, the contract of tenancy cannot be said to have been frustrated on account of the seizure. Ram Kumar Agarwalla v. P. C. Roy &…
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