Satyabrata Ghose v. Mugneeram Bangur (1954) — Section 56 & Frustration of Object

The Supreme Court explained Section 56. Impossibility is not only “cannot be done”. It also covers supervening events that break the foundation of the deal. Here, wartime requisition caused delay, but it did not destroy the core purpose. So, the contract was not discharged.

• Frustration needs a blow to the root of the contract.
• Mere delay or hardship is not enough.
• Known wartime risks weigh against frustration.

1. Was the contract discharged due to impossibility under Section 56?
2. Did government requisition of land frustrate the object of the agreement?

Section 56 (Contract Act): Impossibility includes situations where a later event, outside both parties’ control and contemplation, destroys the very basis of the bargain.

• Not limited to literal “impossible to perform”.
• Test: Did the event make the expected performance radically different?
• Known risks or temporary delay usually do not frustrate.

The Supreme Court held that the contract was not frustrated. Wartime requisition did not make performance impossible in the legal sense. The event did not destroy the foundation of the bargain. Parties were aware of war conditions.

• Impossibility = includes frustration where the basis collapses.
• Requisition caused temporary suspension, not destruction of purpose.
• Pre-known war risks reduce the case for frustration.

This case draws the line between hardship and true frustration. It guides courts and drafters to use clear force majeure, suspension, and extension terms for government actions and delays.

Mnemonic: “ROOT” — Risk known • Object intact • Only delay • Test: radical change?

1. Risk known: War risk was known.
2. Object intact: Housing plan still possible later.
3. Test: No radical change → no frustration.

Frustration

Law says the contract ends because a later event kills its basic purpose.

Force Majeure

A clause listing events (war, requisition) that excuse or suspend performance.

Requisition

Government takes control of property for public use, usually temporarily.