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Section 67: Effect of neglect of promisee to afford promisor reasonable facilities for performance

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 66 All 266 Sections of Indian Contract Act Section 68

Legal Commentary & Landmark Judgments: Section 67

Section 67 of the Indian Contract Act, 1872 codifies the statutory defense of promisee non-cooperation, providing that if any promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise, the promisor is excused by such neglect or refusal as to any non-performance caused thereby.

  • Promisee's Statutory Duty to Afford Facilities: Implies a mandatory legal obligation on the promisee to provide necessary site access, approvals, permits, structural foundations, or commercial cooperation essential for performance.
  • Neglect or Refusal by Promisee: Requires proof of positive neglect, active omission, or outright refusal by the promisee to furnish the contemplated reasonable facilities.
  • Complete Statutory Excuse and Discharge from Breach: The promisor is statutorily absolved of any delay, default, liquidated damages, or non-performance to the extent it was caused by the promisee's neglect or refusal.
Key Landmark Precedents:
  • M. Sham Singh v. State of Mysore (1973) 2 SCC 303: The Supreme Court recognized that under Section 67, where a promisor's performance is contingent upon the promisee providing specific facilities or appointments and the promisee fails to do so, the promisor is legally excused from non-performance.
  • State of Kerala v. E.K. Chandrasenan (1996) 7 SCC 652: The Supreme Court held that the failure of the state department to hand over unencumbered possession of the project site constituted neglect under Section 67, completely excusing the contractor from delay and defeating the state's claim for penalties.
Courtroom Practice & Strategic Litigation Guidance:

In EPC, turn-key, and construction arbitrations, compile a contemporaneous delay matrix tracking employer defaults (delayed site handover, pending drawings, utility delays). Plead Section 67 as a complete statutory defense to counter liquidated damages, milestone deductions, or contract termination invoked by the employer.

Section 66 All 266 Sections of Indian Contract Act Section 68