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Report No. 199

17. Relief that may be granted by Court.-

(1) Without prejudice to the provisions in the Indian Contract Act, 1872 (9 of 1872), Specific Relief Act, 1963 (47 of 1963), Sale of Goods Act (3 of 1930) or to the provisions of any other law for the time being in force, where the Court comes to the conclusion having regard to sections 5, 6, 9 to 14 that a contract or a term thereof is either procedurally or substantively unfair or both, the Court may grant any one or more of the following reliefs:-

(a) refusing to enforce the contract or the term thereof;

(b) declaring the contract or the term is unenforceable or void;

(c) varying the terms of contract so as to remove the unfairness;

(d) refund of the consideration or price paid;

(e) compensation or damages;

(f) permanent injunction;

(g) mandatory injunction; or

(h) any other relief which the interests of justice require as a consequence of the non-enforcement of the contract or the term thereof which is unfair provided that where the contract or its term is procedurally unfair as stated in section 5, the person who suffers the disadvantage may, at his option, insist that the contract or term shall be performed, and that he shall be put in the position in which he would have been if the conduct, manner or circumstances referred to in that section did not permit the disadvantageous term to form part of the contract.

(2) For the purpose of granting the reliefs under subsection (1), the Court may determine if any of the terms of the contract which are unfair are severable and thereafter whether and to what extent and in what manner, the remaining terms of the contract can be enforced or given effect to.

Unfair (Procedural and Substantive) Terms in Contract Back

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