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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.
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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