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
alia held that it was duty of the
Court not to enforce penalty clause but only to award a reasonable
FAO (COMM) 131/2022 Page
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
been a pre-estimate and the clause providing for
forfeiture of bank guarantee was definitely by way of penalty.
That being the case, the aggrieved ... 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
otherwise
enforceable in civil law. Hence, as per Ld. Counsel for Accused, there is no
power to enforce a penalty clause but only reasonable compensation ... clause that operates in terrorum (i.e., a
penalty clause). This is also clear from the fact that apart from the penalty
clause, interest
otherwise
enforceable in civil law. Hence, as per Ld. Counsel for Accused, there is no power
to enforce a penalty clause but only reasonable compensation ... clause
that operates in terrorum (i.e., a penalty clause). This is also clear from the fact that
apart from the penalty clause, interest
become due. This stipulation is not by way of penalty,
and the contract may be enforced according to its terms.
(g) A borrows ... money or other property already
delivered. Duty not to enforce the penalty clause but
only to award reasonable compensation is statutorily
imposed upon courts
seminal pronouncement.
15. The duty of the court not to enforce the penalty clause but only to
award reasonable compensation has been held
paid in case of breach, and
stipulations by way of penalty.
9. The second clause of the contract provides that if for
any reason ... money or other property already delivered. The
duty not to enforce the penalty clause but only to award
reasonable compensation is statutorily imposed upon
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
