Highlights
Supreme Court of India
Fateh Chand vs Balkishan Das on 15 January, 1963
Equivalent citations: 1963 AIR 1405, 1964 SCR (1) 515
Author: S C.
Bench: Sinha, Bhuvneshwar P.(Cj), Gajendragadkar, P.B., Wanchoo, K.N., Gupta, K.C. Das, Shah,
J.C.
PETITIONER:
FATEH CHAND
Vs.
RESPONDENT:
BALKISHAN DAS
DATE OF JUDGMENT:
15/01/1963
BENCH:
SHAH, J.C.
BENCH:
SHAH, J.C.
SINHA, BHUVNESHWAR P.(CJ)
GAJENDRAGADKAR, P.B.
WANCHOO, K.N.
GUPTA, K.C. DAS
CITATION:
1963 AIR 1405 1964 SCR (1) 515
CITATOR INFO :
RF 1970 SC1955 (3,5)
E&D 1970 SC1986 (34)
RF 1971 SC 422 (20)
ACT:
Contract-Compensation for breach of contract where penalty stipulated for-"the contract contains any other stipulation by way of penalty", if applicable, to all stipulation by way of penalty-Indian Contract Act, 1872 (Act IX of 1872), i. 74 --Code of Civil Procedure, 1908 (Act 5 of 1908), s. 2 (12) and O. 20 r. 12(1) (c).
HEADNOTE:
By agreement dated March 21, 1949, the plaintiff contracted to sell leasehold rights in a piece of land and in the building constructed thereon to the defendant. The plaintiff received Rs. 25,000/- under the agreement and delivered possession of the building and the land in his occupation to the defendant, but the sale was not completed before the expiry of the period stipulated in the agreement, and for this default each party blamed the other. The plaintiff instituted a suit in the court of the Subordinate
judge claiming to forfeit the amount of Rs. 25,000/- received by him, and praying for a decree for possession of the land and building and for compensation for use and
occupation of the building from the date of delivery of possession to the defendant of the property. The defendant contended that the plaintiff having broken the contract
could not forfeit the amount of Rs. 25,000/- received by him nor claim any compensation. The trial judge held that the plaintiff had failed to put the defendant in possession and could not therefore retain Rs. 25,000/- and accordingly directed that on the plaintiff depositing Rs. 25,000/- less Rs. 1,400/- the defendant do put the plaintiff in possession and awarded to the plaintiff future mesne profits at the rate of Rs. 140/- permitters from the date of the suit until delivery of possession. On appeal the High Court modified the decree of the trial court and declared ,that the plaintiff was entitled to retain out of Rs. 25,000/- paid by the defendant under the sale agreement, a sum of Rs. 11,250/- and directed that the plaintiff do get from the defendant compensation for use at the rate of Rs. 265/- per mensem.
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