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Nar Singh Prasad vs Shailender Kumar Mishra on 4 August, 2017

39. A bare perusal of the abovesaid principle of law depicts that even if the plaintiff has failed to perform his part of the contract, though not proved by defendant, even then, the defendant is not entitled to ask for liquidity damages or could invoke the clause of the said agreement by way of forfeiture of the said amount either as a penalty or by way of liquidated damages. The mandate of section 74 of Indian Contract Act is that the defaulting party is to pay the reasonable damages not exceeding the amount so named only to the other party. The amount cannot be recovered by the other party from the party in default by way the penalty in as much as the damages as penalty only are prohibited by virtue of section 74 of the Indian Contract Act. In this regard, though not quoted reliance is placed upon Nar Singh Page nos. 21 of 24 CS no. 43/2016 Kishore Kumar Rajora v. Mukesh Rajore & ors. DOD : 01.04.2022 Prasad vs Shailender Kumar Mishra judgment passed in RFA No.702/2017 by Hon'ble High Court of Delhi, wherein it has been observed as under :
Delhi High Court Cites 11 - Cited by 9 - V J Mehta - Full Document
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