Is Indian Contract Act applicable when the subjectmatter is subjudice?


1. Ram takes loan of Rs. 1,00,000/- in cash from Shyam. 2. Ram deposits the cash into his bank. 3. Shyam asks for his amount back from Ram. 4. Ram denies to give back. 5. Shyam lodges an FIR and also files a suit against Ram that the loan was taken by fraud and forgery. 6. Cases are pending in both the Criminal and Civil Courts. 7. Bank came to know that the amount kept in the name of Ram actually belongs to Shyam. 8. Bank handovers the amount to Shyam and issues a letter to Ram informing amount debited and closure of account. Is the Indian Contract Act section 39 appl. in a suit?

Answers (1)


347 votes

It does not appear that section 39 of Indian contract act has any applicability to the given facts.
Section 39 reads as follows:
Effect of refusal of party to perform promise wholly.—When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.


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