MST. JASWANT KAUR Vs. HARNAM SINGH

JUDGEMENT

(1.) THIS appeal must succeed on the basis of the decision of the Supreme Court in Sir Chunilal v. Mehta and Sons Limited v. Century Spinning and Manufacturing Co. Ltd. : A.I.R. 1962 S.C. 1314.

(2.) A sum of Rs. 500/ - was stipulated in the contract as liquidated damages for breach of the contract. In this case, the contract was for the sale of land measuring 13 1/2 Kanals for a sum of Rs. 1,700/ -. The sale price was to be paid in two equal installments, the last installment to be paid at the time of registration. The sale deed could not be executed with the result that the vendor filed a suit for recovery of Rs. 500/ -, which was stipulated as damages in the case of breach of contract. If the breach was on the part of the vendor, she had to pay the same amount to the vendee. Both the Courts below have come to a concurrent decision that the breach of contract in this case is on the part of the vendee. The trial Court awarded the entire sum of Rs. 500/ - to the vendor, but the lower appellate Court has reduced that amount to Rs 200/ -. The vendor has come up in second appeal to this Court claiming the remaining amount of Rs. 300/ -.

(3.) THE second contention of Mr. Mehra is that the decision of the lower appellate Court reducing the amount from Rs. 500/ - to Rs. 200/ - is justified in terms of the language of section 74 of the Indian Contract Act. As already, stated this matter stands concluded by the decision of the Supreme Court in Sir Chunilal's case. It was ruled by their Lordships of the Supreme Court that -