LANDMARK CASE

Fateh Chand v. Balkishan Dass

AIR 1963 SC 1405 · Supreme Court of India · Contract law

At a glance

Citation: AIR 1963 SC 1405
Court: Supreme Court of India
Area of law: Contract law
In one line: No. Only reasonable compensation up to the stipulated sum.

1 Facts

A buyer forfeited money paid under a sale agreement.

2 Issue

Can a stipulated sum be recovered automatically?

3 What the court decided

No. Only reasonable compensation up to the stipulated sum.

4 Why it matters

Foundation of Section 74 law.

5 Think about it

Is the penalty and liquidated damages distinction relevant in India?

6 Analyse it yourself

Read the full judgment from an official source or a law database, then brief it in seven steps: facts, issues, arguments, decision, ratio, obiter and significance. Always check the citation before you rely on it.

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Felthouse v. Bindley (1862) 11 CB (NS) 869
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