Assignment of Contract : Supreme Court Explains the Legal Position

 Assignment of Contract : Supreme Court Explains the Legal Position 

In the year when the declared date of India - China war occurred when Shri Jawaharlal Nehru was Hon'ble Prime Minister of India, an important judgment was passed by Hon'ble Supreme Court on 4 May 1962.

It has been commented in Khardah Company Ltd v Raymon & Co (India) Pvt Ltd [1962] GCtR 2936 (SC) thus : - 

"An assignment of a contract might result by transfer either of the rights or of the obligations thereunder."

"As a rule obligations under a contract cannot be assigned except with the consent of the promisee, and when such consent is given, it is really a novation resulting in substitution of liabilities." 

"Rights under a contract are assignable unless the contract is personal in its nature the rights are incapable of assignment either under the law or under an agreement between the parties."

Kindly note that full text Judgments of Hon'ble Supreme Court can be downloaded absolutely free of cost (without any charges except internet data) from the official website at the link 

 https://main.sci.gov.in/judgments

Then entering the date of Judgment, for example, as  4 May 1962.

Written by 

Vishal

Delhi

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