THE NAIHATI JUTE MILLS LTD. vs HYALIRAM JAGANNATH

The Supreme Court held that under Section 56 of the Contract Act, the appellants could not claim impossibility of performance as a defense since they had expressly taken on the burden of obtaining the import license by December 1958. The Court found that the contract's terms clearly stipulated that failure to provide the license would result in damages based on the market price as of January 2, 1959. Consequently, the appeal was dismissed, affirming the arbitration award that held the appellants liable for damages amounting to Rs. 34,000.