Alpha Constructions Ltd and Beta Infra Private Ltd entered into a Joint Venture Agreement (JVA) for the development of a commercial project. The agreement contained a termination clause allowing either party to terminate

The facts of the given situation are similar to the facts of the case, Inter Ads Exhibition Pvt. Ltd. vs. Busworld International Cooperative (13.01.2020 - DELHC) In this case, the main and substantive relief claimed in the petition, was for setting aside the termination notice dated 15.03.2019. The court stated that Learned counsel for the respondent in my view is right in her contention that the said relief cannot be granted in a petition under Section 9 of the Act (i.e. Arbitration and Conciliation Act, 1996). The contract between the parties is clearly determinable in nature. Article 7.3 of JVA-I enables either one of the parties to terminate the agreement, if the other party is in default or is in breach of any material obligation under the JVA and has failed to correct the default within 30 days of the receipt of the notice. The Court held that once a contract is determinable in nature and has been terminated by one party to the contract, the same cannot be revived or restored by a Court and specific performance of the same cannot be sought by the defaulting party. This has been clearly held by the Court in the case of RPS Educational Society (Regd.) vs. DDA, OMP 538/2008 , decided on 02.09.2009. The contract law supports the Law relating to Arbitration as the Arbitral Process mainly gets effective due to the agreement of the parties. Section 9 of the Arbitration and Conciliation Act, 1996 primarily provides for interim relief but does not empower courts to set aside a valid termination or restore a contract that has already been determined by one party as per contractual terms. Therefore, Beta Infra Pvt. Ltd.'s petition seeking to nullify the termination and restore the agreement is unlikely to succeed, and its remedy lies in seeking damages or other reliefs under arbitration instead of specific performance. Therefore, Alpha Constructions which has issued a termination notice is likely to succeed.