penalty clause for
breach and a cheque is issued at the time of execution of such agreement for
securing the penalty clause, such that ... enforce payment
under a bounced cheque if it is otherwise enforceable in civil law. Since penalty
clauses, in entirety, are not enforceable even under civil
money or
other property already delivered. Duty not to enforce the penalty
clause but only to award reasonable compensation is statutorily
imposed upon courts ... Contract Act imposes a duty on the courts not
to enforce a penalty clause but only to award reasonable
compensation in case of breach
deed at the Collector rate, therefore, they
cannot be permitted to enforce penalty clause. In respect of aforementioned
submissions, he relied upon the ratio decidendi
money or other property already delivered.
Duty not to enforce the penalty clause but only to award
reasonable compensation is statutorily imposed upon courts ... under a contract and the courts have been enjoined not
to enforce penalty clause but only to award reasonable compensation.
j). The proposition has been
M/S Mubarak Overseas Private Limited vs Union Of India & Others on 28 September
M/S Atc Foods Private Limited vs Union Of India & Others on 28 September
M/S Mubarak Overseas Private Limited vs Union Of India & Others on 28 September
Represented By vs M/S Tayal & Co on 20 January, 2022
IN THE COURT
that it is the duty of the court not to
enforce the penalty clause but only to award reasonable
compensation has been held ... that it is the duty of the court not to enforce the penalty clause but only
ARB No 584281/2016 Union of India
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
