Delhi High Court

### A contract terminable only for cause and subject to a cure period is not "determinable" under Section 14(d).

Mahajan Imaging Pvt. Ltd. v. Pushpawati Singhania Research Institute & Anr. [O.M.P.(I) (COMM.) 29/2026]

Delhi High CourtJUDGMENT: no citation3 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner (Mahajan Imaging) and Respondent No. 1 (PSRI Hospital) entered into a Radiology Services Agreement on 02.05.2016 for a 15-year term

Source reference: p. 3

On 02.01.2026, the Respondent issued a Termination Notice alleging material breaches of statutory and contractual obligations (PC-PNDT Act and Atomic Energy Act violations), effective 02.02.2026

Source reference: p. 4

The Petitioner challenged the notice, asserting the Agreement required a mandatory 45-day cure period under Clause 10.2(a) which was never provided

Source reference: p. 4, 8

The Petitioner filed this Section 9 petition seeking an interim injunction against the termination pending arbitration

Source reference: p. 2
02

Issues

1. Whether the Radiology Services Agreement is "in its nature determinable" under Section 14(d) of the Specific Relief Act (SRA), thereby barring specific performance and interim injunctions

Source reference: p. 11

2. Whether the continuous nature of the services under the Agreement attracts the bar on specific performance under Section 14(b) of the SRA due to the need for constant judicial supervision

Source reference: p. 6, 21

3. Whether the Petitioner satisfied the "triple test" (prima facie case, balance of convenience, and irreparable injury) for the grant of interim protection

Source reference: p. 9, 38
03

Law Applied

The court primarily applied Section 14 of the Specific Relief Act, 1963, which lists contracts not specifically enforceable, including those involving continuous duties and those determinable in nature

Source reference: p. 11

It relied heavily on the Supreme Court's classification in *K.S. Manjunath v. Moorasavirappa*, which distinguishes between contracts terminable "at will" (determinable) and those terminable only "for cause" with a cure notice (not determinable)

Source reference: para. 29, 31

Precedents like *DLF Home Developers Ltd. v. Shipra Estate Ltd.* [para. 29] and *ArcelorMittal Nippon Steel (India) Ltd. v. Essar Bulk Terminal Ltd.* [para. 25] were utilized to define the scope of Section 9 of the Arbitration and Conciliation Act, 1996, and the parameters for interim relief.

Source reference: para. 29, 25
04

Reasoning

The Court reasoned that Clause 10.2(a) of the Agreement did not grant an "at-will" right to terminate; rather, it required a "material breach" and a 45-day "cure period"

Source reference: p. 19-20

Following *K.S. Manjunath*, the Court held that since the Respondent could not terminate the contract so long as the Petitioner remained willing to perform and was not in default (until the cure period lapsed), the contract was not "inherently determinable"

Source reference: p. 20

Regarding Section 14(b) SRA, the Court found that staying a termination does not require day-to-day judicial management of radiology services, as the parties had functioned independently for nine years

Source reference: p. 21

On the merits, the Court observed that the Respondent prima facie "put the cart before the horse" by terminating without adhering to the mandatory 45-day cure notice period

Source reference: p. 39-40

The Court found that the loss of the Petitioner’s commercial rights for the remaining five-year tenure and potential reputational harm constituted irreparable injury

Source reference: p. 40-41
05

Holding

The Court answered the issues in the negative regarding the statutory bars and in the affirmative regarding the triple test.

It held that the Agreement is not determinable under Section 14(d) SRA because it requires a cure period for termination

Source reference: p. 20

The Court granted the petition, staying the Impugned Termination Notice dated 02.01.2026 and directing the parties to maintain *status quo* as it existed prior to the notice

Source reference: p. 41

The Respondents were directed to adhere to the contractual terms, and all rights were reserved for the Arbitral Tribunal

Source reference: p. 41-42
Delhi High Court

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Mahajan Imaging Pvt. Ltd. v. Pushpawati Singhania Research Institute & Anr. [O.M.P.(I) (COMM.) 29/2026]

Delhi High Court · no citation

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