MAHABIR PRASHAD RUNGTA vs DURGA DATT.

The Supreme Court held that in commercial contracts, time is ordinarily of the essence, as established under Section 55 of the Indian Contract Act, 1872. The appellant's failure to make timely payments constituted a breach of contract, allowing the respondent to rescind the agreement. The Court further ruled that interest prior to the commencement of the suit is not claimable unless conditions under an agreement, usage of trade, or statutory provisions are satisfied, and that interest pendente lite is at the discretion of the Court, to be fixed according to circumstances.