Phulchand Exports Ltd vs Ooo Patriot on 12 October, 2011
This landmark declaration of law still holds the field. When the parties have agreed as in this case for payment of damages as stipulated by them the same becomes payable. This principle laid down in this case has been applied in several subsequent cases before the Supreme Court, including the one reported in PHULCHAND EXPORTS LTD., V. OOO PATRIOT (2011 (10) Supreme Court Cases 300). Section 74 of the Indian Contract Act has been held to enable the party aggrieved to claim that much and does not entitle such person to straight away get the stipulated amount and what is rally guaranteed is only a reasonable sum not exceeding the stipulated sum. The Court has been held to have the power and even obligated to adjudge the reasonable compensation in each case on the merits of the claim made.