KANCHAN UDYOG LIMITED vs UNITED SPIRITS LIMITED

The Supreme Court addressed the unilateral termination of a bottler's agreement under Section 62 of the Indian Contract Act, emphasizing that novation requires mutual consent and cannot occur through unilateral actions. The Court held that the appellant's performance of obligations was not in dispute, and the termination was contrary to the agreement's terms. The appeal was dismissed, affirming the Division Bench's decision to reverse the Single Judge's decree for damages.