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2003 (9) TMI 812

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..... breach of the original agreement. If the Respondents were not in breach of the original agreement, then the bank guarantees could not have been enforced by the Appellant. Lastly and most importantly in the suit it is not claimed that the consideration for the supplemental agreement was not the enforcement of the bank guarantees. For all these reasons, we are in agreement with the reasoning given in the impugned judgment that the supplemental agreement was without consideration. We therefore see no reason to interfere. Accordingly the Appeal stands dismissed. There shall be no order as to costs. - S Variava And H Sema, JJ. JUDGMENT Variava, 1. This Appeal is against a judgment of the Andhra Pradesh High Court dated 21st March, 1996. 2. Bri .....

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..... ff the dal in an auction sale for a sum of ₹ 9,60,111. 5. The Appellant then filed a suit for damages for non delivery of 89.607 tonnes at the rate of ₹ 600 per quintal amounting to ₹ 5,37,642/-. They also claimed damages of ₹ 25,09,449/- and ₹ 16,46,463.37 towards interest. The suit was decreed for a sum of ₹ 537642 being price for non-delivery of 89.607 tonnes of dal. However, the remaining claim was rejected on the ground that they arose only under the supplemental agreement and the supplemental agreement had been entered into by the Respondent under duress and coercion and that there was no consideration for the same. 6. The Appeal of the Appellant has been dismissed by the impugned judgment. In the i .....

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..... e on the part of the Appellants agreement not to enforce those bank guarantees. In this behalf reliance was placed on the definition of the term consideration in Section 2(d) of the Contract Act, which reads as follows: When, at the desire of the promisor, promises or any other person has done or abstained from doing, or does not abstains from doing or promises to do or to abstain from doing, something, such act or abstinence or promise is called consideration for the promise. 11. Undoubtedly, if the promisor abstains from doing something that could be consideration for the contract. However, in the supplemental agreement there is no mention that the consideration is non-enforcement of bank guarantees. Further the Respondents had delivered .....

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