Effect of failure to perform at fixed time, in contract in which time is essential
Section 55 of the Indian Contract Act, 1872 deals with effect of failure to perform at fixed time, in contract in which time is essential. When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract, or so much of it as has not been performed, becomes voidable at the option of the pro The Act came into force on 01 Sep 1872.
When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract, or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of the essence of the contract.
Effect of such failure when time is not essential.--If it was not the intention of the parties that time should be of the essence of the contract, the contract does not become voidable by the failure to do such thing at or before the specified time; but the promisee is entitled to compensation from the promisor for any loss occasioned to him by such failure.
Effect of acceptance of performance at time other than that agreed upon.--If, in case of a contract voidable on account of the promisor's failure to perform his promise at the time agreed, the promisee accepts performance of such promise at any time other than that agreed, the promisee cannot claim compensation for any loss occasioned by the non-performance of the promise at the time agreed, unless, at the time of such acceptance, he gives notice to the promisor of his intention to do so.1
STATE AMENDMENT
Uttar Pradesh.--
Amendment of section 55.--In section 55 of the Principal Act, in the third paragraph, for the words "unless at the time of such acceptance he gives notice to the promiser of his intention to do so", the words "where at the time of such acceptance he has waived his right to do so" shall be substituted."
[Vide Uttar Pradesh 57 of 1976, s. 26]
Section 55, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Saradamani Kandappan v. S. Rajalakshmi
Court's Decision & Legal Precedent
Judgment of Main Case order-12.pdf 2011-07-04. CA 7254-7256/2002. Raveendran. DATE-CHECK flagged 2002-06-19 HC DB / 1991 SJ / 1981 agreement dates (false positive); body is the named 4 Jul 2011 reportable. Time as essence for payment of price in immovable-property sales under s.55; in a rising market, delay in paying the price is not routinely condoned even if time for delivery is not of the essence.
On this section: Time stipulated for payment of price in an immovable-property sale can be of the essence under s.55 even if time for delivery is not (Saradamani Kandappan).
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I. S. Sikandar (d) by Lrs. vs K. Subramani
Court's Decision & Legal Precedent
When parties to a contract for sale of immovable property expressly agree to a specific time for performance of the contract, time becomes the essence of the contract and must be strictly adhered to. Failure to perform within the stipulated time constitutes a material breach which entitles the non-defaulting party to rescind the contract. A suit for specific performance based on a contract that has been validly terminated by the non-defaulting party is not maintainable unless the plaintiff seeks declaratory relief to challenge the termination. Additionally, a plaintiff seeking specific performance must prove through credible documentary evidence and conduct that he was ready and willing to perform his part of the contract at all material times, including prior to filing the suit and continuing till the date of judgment. The burden of proof lies squarely on the plaintiff under Section 16(c) of the Specific Relief Act. When a plaintiff fails to meet this burden, the court cannot exercise its discretionary power under Section 20 of the Specific Relief Act to grant specific performance, notwithstanding the equitable considerations involved.
On this section: Section 55 deals with consequences of failure to perform an executory contract at or before the stipulated time. The Court applied this section to establish that when parties agree on a specific time for performance in a contract for sale of immovable property, time becomes the essence of the contract. The Court held that failure to perform within the stipulated period renders the contract voidable at the option of the promisee if time was intended to be of the essence.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Thereafter, it was also extended for a period of 30 days taking the time for completion of the work till end of February 2009. This is an admitted position. However, admittedly the plaintiffs did not complete the work by the end of February 2009. 36. Section 55 of the Indian Contract Act, 1872 which is important at this juncture, provides: > ["55. Effect of failure to perform at fixed](https://www.scconline.com/Members/BrowseResult.aspx BS055) [time, in contract in which time is essential](https://www.scconline.com/Members/BrowseResult.aspx BS055).— When a party to a …
Questions about Section 55
What have the courts held on Section 55 of the Indian Contract Act?
Saradamani Kandappan v. S. Rajalakshmi (04 Jul 2011) is the leading judgment on this section among those set out below: Time stipulated for payment of price in an immovable-property sale can be of the essence under s.55 even if time for delivery is not (Saradamani Kandappan). Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2011 to 2013.
How do I find court cases under Section 55 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 55, section 55 Contract Act, section 55 of the Indian Contract Act. People searching for it also type employment contract act (55/2001) and employment contracts act 55 2001 finland. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Saradamani Kandappan v. S. Rajalakshmi (04 Jul 2011).
When did Section 55 of the Indian Contract Act come into force?
Section 55 of the Indian Contract Act, cited as Contract Act 55, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.