R.N. KUMAR vs R.K. SORAL

The Supreme Court held that whether there is a complete novation of a contract under Section 10 of the Indian Contract Act, 1872, depends on the facts and circumstances of each case. In this instance, the Court found that the 1985 agreement intended to supersede the earlier agreement, which was deemed cancelled due to non-payment of Rs.6.50 lakhs by the respondent. The Court dismissed the special leave petition, affirming that the earlier agreement had revived and the conditions under Section 20 of the Arbitration Act, 1940 necessitated the filing of the arbitration agreement.