How doctrine of severability is applicable for interpretation of contract?
57 of Indian Contract Act, 1872, in B.O.I. Finance Ltd., v.
Custodian and others (1997) 10 SCC 488, a three Judge
Bench of this Court has
held that question of severance arises only in the case of a
composite agreement consisting of reciprocal promises. In Shin
Satellite Public Co. Ltd. V. Jain Studios Ltd.(2006) 2 SCC 628, this Court has observed that the proper test for deciding
validity or otherwise of
an order or agreement is “substantial severability” and not
“textual divisibility”. It was further held by this Court that it is
the duty of the Court to sever and separate trivial and technical
parts by retaining the main or substantial part and by giving
effect to the latter if it is legal, lawful and otherwise enforceable.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 9151-9152 OF 2015
(Arising out of S.L.P. (Civil) Nos. 34129-34130 of 2014)
Elektron Lighting Systems …..Appellants
Pvt. Ltd. and Anr.
Versus
Shah Investments Financial Developments
and Consultants Pvt. Ltd and Ors. Etc. .….Respondents
Dated;November 20, 2015.
Citation: 2016(1)ABR190, 2015XII AD (S.C.) 289, 2016 1 AWC671SC, 2015(4)J.L.J.R.500, (2015)8MLJ629(SC), 2016(1)PLJR17, 2016(1)RCR(Civil)397, 2015(12)SCALE538
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