Validity of claim filing period under Indian Contract Act, 1872

The Supreme Court addressed the validity of a claim filing period under Section 28 of the Indian Contract Act, 1872. The Court held that any agreement restricting a party from enforcing their rights within a specified time frame is void. The condition of lodging a claim within a one-month period, extendable by another month, was deemed contrary to the Act and therefore void. Consequently, the Court dismissed the special leave petition and disposed of any pending applications in accordance with this judgment.

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Issues: Validity of claim filing period under Indian Contract Act, 1872

Validity of claim filing period under Indian Contract Act, 1872:
The Supreme Court, comprising Hon'ble Mr. Justice Hemant Gupta and Hon'ble Mr. Justice V. Ramasubramanian, addressed the issue of the validity of a claim filing period under Section 28 of the Indian Contract Act, 1872. The petitioner argued that the claim was not filed within the stipulated period of one month, or within an extendable condonable period of one month. However, the Court referred to Section 28 of the Act, which states that any agreement restricting a party from enforcing their rights within a specified time frame is void. The Court held that the condition of lodging a claim within a one-month period, extendable by another month, is contrary to Section 28 of the Act and therefore void. Consequently, the Court found no grounds to interfere with the order passed by the High Court and dismissed the special leave petition. Any pending applications were also disposed of in light of this judgment.

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