Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Indian Contract Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Revenue Recovery Act, 1890 (1 of 1890) Indian Contract Act, 1872 (9 of 1872) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Indian Contract Act, 1872-s. 73 -Agreement-Clause 12- Interpretation of-Right to assess damages when arises-Damages for breach of condition of agreement-Assessment to be made by an independent body and not by parties to the contract. .Revenue Recovery Act-Damages for breach of conditions of contract-Whether recoverable as arrears of land revenue. Clause 12 of the agreements separately entered into between the respondents and the appellant-State provided that "for any breach of conditions the first party (the respondent) shall be liable to pay damages to the second party (the State) as may be assessed by the second party in addition to the forfeiture in part or full of the security amount deposited by the first party and that any amount that may become due or payable by the first party to the second party under any part of the agreement, shall he deemed to be and may be recovered from the first party as if they were arrears of land revenue. According to the State the respondents committed a breach of their respective contract and, therefore, demanded payment of damages as assessed by the authorities representing the State. As the respondents failed to pay the damages, the State initiated recovery proceedings under the Revenue Recovery Act. The respondents challenged the recovery proceedings by filing suit/writ petition. The Full Bench of the High Court dismissed the Second Appeal (out of which C.A. No. 471 of 1975 arises) preferred by the State holding that the State is not competent to adjudicate upon the question whether the respondent committed breach of contract, that the State is not competent to assess the damages for any breach of contract not admitted by the respondent and that the damages so assessed cannot be recovered as if they were arrears of land revenue. Following this decision, the High Court allowed the writ petitions filed by the other respondents and quashed the recovery proceedings. In the appeal to this Court on behalf of the State-it was contended that the authorities representing the State, even though a party to the agreement are empowered under Clause 12 to not only assess the damages occasioned by the breach of the conditions but also to adjudication any issue concerning the commission of the breach itself. |
Judge | Hon'ble Mr. Justice S. Natarajan |
Neutral Citation | 1987 INSC 59 |
Petitioner | State Of Karnataka Etc. |
Respondent | Shri Rameshwara Rice Mills Thirthahalli Etc. |
SCR | [1987] 2 S.C.R. 398 |
Judgement Date | 1987-02-24 |
Case Number | 471 |
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