https://www.taxtmi.com/caselaws?id=200781 In contracts for sale of immovable property, a liquidated-damages or penalty clause does not, by itself, make money compensation adequate or bar specific performance. The court must examine whether the stipulated sum was intended as an alternative to conveyance or only as security for performance; absent an express option to pay money in lieu of transfer, the clause is not conclusive against equitable relief. Specific performance may also be refused only on sound judicial grounds, and the evidence here did not show that the purchaser obtained any unfair advantage or acted through fraud, misrepresentation, or pressure. The decree for specific performance was therefore upheld. en-us Fri, 03 Aug 1973 00:00:00 +0530 Fri, 19 Sep 2025 10:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200781 In contracts for sale of immovable property, a liquidated-damages or penalty clause does not, by itself, make money compensation adequate or bar specific performance. The court must examine whether the stipulated sum was intended as an alternative to conveyance or only as security for performance; absent an express option to pay money in lieu of transfer, the clause is not conclusive against equitable relief. Specific performance may also be refused only on sound judicial grounds, and the evidence here did not show that the purchaser obtained any unfair advantage or acted through fraud, misrepresentation, or pressure. The decree for specific performance was therefore upheld. Case-Laws Indian Laws Fri, 03 Aug 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200781