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Showing contexts for: penalty clause can be enforced in Union Of India vs M/S U.P State Handloom Corporation Ltd on 31 August, 2020Matching Fragments
24. In the case Vishal Engineers & Builders vs Indian Oil Corporation Ltd. (supra), it was inter alia held that it was duty of the Court not to enforce penalty clause but only to award a reasonable compensation, which had been held to be statutorily imposed upon Courts by Section 74 of the Contract Act and Court had to adjudge in every case, reasonable compensation for breach of contract having regard to conditions which existed on date of breach.