LANDMARK CASE

Kailash Nath Associates v. Delhi Development Authority

(2015) 4 SCC 136 · Supreme Court of India · Contract law

At a glance

Citation: (2015) 4 SCC 136
Court: Supreme Court of India
Area of law: Contract law
In one line: Only reasonable compensation for loss is allowed under Section 74.

1 Facts

DDA forfeited earnest money after a bid process.

2 Issue

Can earnest money be forfeited without loss?

3 What the court decided

Only reasonable compensation for loss is allowed under Section 74.

4 Why it matters

Key case on penalty and damages.

5 Think about it

How does Indian law differ from English law here?

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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Central Inland Water Transport Corporation v. Brojo Nath Ganguly (1986) 3 SCC 156
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Fateh Chand v. Balkishan Dass AIR 1963 SC 1405
Felthouse v. Bindley (1862) 11 CB (NS) 869

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