KORES (INDIA) LTD. Vs. ASHISH KUMAR AHOOJA

JUDGEMENT

(1.) On the basis of promises, reciprocal promises / obligations, business transactions are entered. One of the party promises to do some act and believing on it, other party promises to do another act. On the basis of such set of promises, legal obligations are created. Sometime, such transactions take place in between the two parties, whereas, in some transactions, there are three parties. Sometime, the promises are interconnected amongst all these three parties. That is to say, fulfillment of promises depends upon fulfillment by other parties. If, one of them, fails to fulfill his promises, it affects fulfillment of the promises by other two parties. In some cases, one of the parties is a formal party, that is to say, though his presence is important, but fulfillment of the promises in between other two parties does not depend upon the fulfillment of the promise by the First-Party. In the Appeals before this Court, similar issue has cropped up.

(2.) There are three parties involved. They are :-

(3.) There were two 'Memorandum of Understandings' ("hereinafter, 'MoU') executed in between these parties and referred by them. They are:-