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In case of Fatechand Vs Balkishan Das Constitution Bench of Supreme Court has expressed that "the contract contains any other stipulations by way of penalty" comprehensively applies to have covenant involving the penalty whether it is for payment on the breach of contract of money or delivery of property in future or for forfeiture of right of money or other property already delivered or enforce penalty clause but only to award reasonable statutorily imposed up on Courts by Section 74 of the Contract Act. In all cases, therefore, where there is a stipulation in the nature of penalty for forfeiture of an amount deposited pursuant to the terms and conditions of the contract which expressly provide for forfeiture but the court has jurisdiction to award such sum only as it is considered reasonable but not existing the amount specified in the contract is liable to forfeiture.