Contract Terminated By An Awardee Following Due Process Cannot Be Subsequently Novated By Awardee Itself: Rajasthan High Court

The Rajasthan High Court ruled that a terminated contract cannot be novated, in a case involving Rajasthan State Mines and Minerals Ltd (RSMML). The court emphasized that once a contract is terminated, it ceases to exist and thus cannot be replaced or modified by a new contract. This decision arose from a dispute where the petitioner sought novation of a previously terminated agreement. The court highlighted that novation requires an existing valid contract, which was not the case here. The ruling clarifies legal positions regarding the novation process and reinforces that contractual termination extinguishes the original contract, making novation impossible.