Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract Act 1872 - ss. 73 7 4 - Breach of contract |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Contract Act, 1872 — ss. 73, 74 - Breach of contract - Extent of allowing stipulated liquidated damages by — way of penaity in absence of actual loss —Failure of the appellant to execute work of public utility-construction of sewerage pumping station, within stipulated time — Termination of contract by respondent-DDA due to delay in execution of the project - Levy of compensation by order of penalty — Suit for recovery of the said amount by respondent — Dismissed by the Single Judge of the High Court, however, decreed in favour of respondent by the Division Bench — Dismissal of review petition — On appeal, held: Section 74 emphasizes that the party complaining of the breach of contract is entitled to receive reasonable compensation whether or not actual loss is proved to have been caused by such breach — {f the compensation named in the contract is by way of penalty, the party is only entitied to reasonable compensation for the loss suffered — However, if the compensation named in the contract for such breach is genuine pre-estimate of loss, the actual loss need not be proved — Burden to prove that no loss was likely to be suffered is on the party committing breach — Thus, it can be presumed that delay in executing the work resulted in loss in the form of environmental degradation |
Judge | Hon'ble Mr. Justice Adarsh Kumar Goel |
Neutral Citation | 2015 INSC 92 |
Petitioner | M/s. Construction & Design Services |
Respondent | Delhi Development Authority |
SCR | [2015] 2 S.C.R. 341 |
Judgement Date | 2015-02-04 |
Case Number | 1440-1441 |
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