https://www.taxtmi.com/caselaws?id=463668 A contract clause providing intermediate compensation for delay was enforced as liquidated damages where the agreement separately fixed staged milestones and contemplated liability for slippage before final completion. Applying Sections 73 and 74 of the Indian Contract Act, the court treated the stipulated sum as a genuine pre-estimate of loss and held that proof of actual loss was not required on these facts. The delays at intermediate stages were established, the correspondence showed contemporaneous concern over slippage, and the clause was not treated as a penal or inoperative formality. The contractor was therefore liable for the deducted intermediate compensation, and the challenge to the levy failed. en-us Mon, 08 May 2017 00:00:00 +0530 Wed, 10 Sep 2025 18:13:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463668 A contract clause providing intermediate compensation for delay was enforced as liquidated damages where the agreement separately fixed staged milestones and contemplated liability for slippage before final completion. Applying Sections 73 and 74 of the Indian Contract Act, the court treated the stipulated sum as a genuine pre-estimate of loss and held that proof of actual loss was not required on these facts. The delays at intermediate stages were established, the correspondence showed contemporaneous concern over slippage, and the clause was not treated as a penal or inoperative formality. The contractor was therefore liable for the deducted intermediate compensation, and the challenge to the levy failed. Case-Laws Indian Laws Mon, 08 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463668