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        Indian Laws

        SC dismissed appeal concerning liquidated damages claim under...

        Liquidated Damages Limited to Express Contract Terms Under Section 74; Equipment Cost Refund Claim Denied

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                SC dismissed appeal concerning liquidated damages claim under plant machinery delivery contract. Court held appellant's claim for Rs.107.54 lakhs was not based on Clause 21 (warranty breach) but sought refund of equipment costs. Since appellant retained machinery without invoking replacement clause, damages were limited to express contractual provisions per Section 74 of Contract Act. HC correctly rejected Rs.68.15 lakhs claim for equipment cost refund. Appellant only entitled to stipulated liquidated damages for specified breaches including delivery delays, performance failures in fermentation plant, steam, and power guarantees. Claim remains confined to contractually agreed damages.
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