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
terms of Clause 3 (a) of the conditions of contract and forfeit security deposit. Mr. Modak submitted that notwithstanding the provisions of Clause ... penalty stipulated for Section 74 of the Indian Contract Act has cast the duty upon the Court not to enforce the penalty clause but only
Hindusthan Paper Corporation Ltd. vs Wellbrines Chemicals Private Ltd. on 7 March, 2002
Equivalent citations
contains any other stipulation by way of penalty' comprehensively applies to every covenant involving a penalty whether it is for payment on breach ... money or other property already delivered. Duty not to enforce the penalty clause but only to award reasonable compensation, is statutorily imposed upon Courts
clause at the end of the section, speaking of proceedings and penalties, and not to any of the designated clauses, particularly not to Clause ... investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed, as if the repealing
object of introducing such a saving clause is to save pending proceedings and authorise new institutions for the enforcement of rights and liabilities accrued under ... clear on the language of the clause itself when it refers to "any right, privilege, obligation, liability, penalty, forfeiture or punishment under the said
upon which the question turns, the names the parties give, the money, penalty or liquidated damages are immaterial." In this case the payment ... that the clause in question was intended to operate as a penalty clause, and that the conditions therein contained would not be enforced. In support
this debt can be enforced by a civil suit. It is a fallacy to say that the penalty clause in the Act bars such
penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture ... respect of a right which is preserved under Clause (c), and Clause (d) refers to any penalty, forfeiture, or punishment incurred in respect
penalty-clause, to pay the rent fixed by the decree. As a matter of fact, the plaintiffs do not seek to enforce the conditions
