https://www.taxtmi.com/caselaws?id=307781 A contract is rendered void under Section 56 when a supervening circumstance, not contemplated by the parties, makes performance legally impracticable or impossible in substance. Here, the development agreement assumed the project land could be used for residential construction, but later objections from forest and pollution authorities prevented construction and left the land's status uncertain. The Court treated the environmental clearance barrier as destroying the foundation of the bargain, and held that impossibility under Section 56 is not limited to physical impossibility. The agreement was therefore frustrated, and resistance to refund of the deposit with interest was not justified. en-us Wed, 29 Jun 2016 00:00:00 +0530 Sat, 06 May 2023 10:10:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307781 A contract is rendered void under Section 56 when a supervening circumstance, not contemplated by the parties, makes performance legally impracticable or impossible in substance. Here, the development agreement assumed the project land could be used for residential construction, but later objections from forest and pollution authorities prevented construction and left the land's status uncertain. The Court treated the environmental clearance barrier as destroying the foundation of the bargain, and held that impossibility under Section 56 is not limited to physical impossibility. The agreement was therefore frustrated, and resistance to refund of the deposit with interest was not justified. Case-Laws Indian Laws Wed, 29 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307781