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Section 46: Time for performance of promise, where no application is to be made and no time is specified

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 45 All 266 Sections of Indian Contract Act Section 47

Legal Commentary & Landmark Judgments: Section 46

Section 46 of the Indian Contract Act, 1872 prescribes the statutory baseline for time of performance where no application is to be made by the promisee and no time is specified in the contract, requiring the engagement to be performed within a reasonable time, which constitutes a pure question of fact.

  • Absence of Contractual Deadline and Prior Demand: Applies specifically to contracts where the parties have neither fixed an express calendar date for performance nor stipulated that the promisee must make a prior application.
  • Objective Standard of Reasonable Time: The promisor is legally obligated to execute the promise within a reasonable time; reasonable time is not an abstract concept but is calibrated against commercial context, trade custom, and the nature of the transaction.
  • Factual Determination and Evidentiary Burden: Section 46 explicitly provides that what is a reasonable time is in each particular case a question of fact, placing the evidentiary burden on the claimant to prove commercial unreasonableness.
Key Landmark Precedents:
  • Hungerford Investment Trust Ltd. v. Haridas Mundhra (1972) 3 SCC 684: The Supreme Court held that what is a reasonable time under Section 46 is a question of fact to be determined having regard to the nature of the agreement, commercial customs, and the contemporaneous conduct of the parties.
  • State of Rajasthan v. Bhupendra Singh (1972) 2 SCC 514: The Supreme Court affirmed that where no time is specified for contract execution, failure by a party to perform within a commercially reasonable period constitutes an actionable breach of contract.
Courtroom Practice & Strategic Litigation Guidance:

In commercial disputes where the contract specifies no firm delivery or completion date, avoid terminating abruptly. Issue a formal 'time-making notice' setting a clear, commercially reasonable deadline (e.g., 15 to 30 days) and stating that time is now of the essence. This crystalizes the reasonable time threshold under Section 46, precluding the debtor from defending on grounds of indeterminate timelines.

Section 45 All 266 Sections of Indian Contract Act Section 47