LAWS(PAT)-1958-9-17

UNION OF INDIA Vs. VASUDEO AGARWAL

Decided On September 23, 1958
UNION OF INDIA (UOI) Appellant
V/S
VASUDEO AGARWAL Respondents

JUDGEMENT

(1.) This appeal is by the defendant railway from the judgment dated the 17th May, 1952 of Mr. K. K. Bose, 6th Additiona Subordinate Judge, Patna, whereby the plaintiffs --respondents' suit has been decreed, and, the defendant -- appellant has been ordered to pay a certain sum of money.

(2.) The decision of tho appeal rests upon the construction of tho contracts between the parties - Exts. A(1), A(2), A(5), A(7) and A(8).

(3.) The principal question, however is : Whether the agreement for payment of the penalty equal to half per cent per day on the value of the undelivered quantity of goods by the plaintiffs to the defendant was in the nature of a penalty?