Aggrieved party is entitled to receive compensation whether or not actual damage or loss is proved

Cases Covered:

A.S. Motors Pvt. Ltd. v. Union of India Ors

Citations:

1. Suresh Koshy George v. University of Kerala,
2. Russel v. Duke of Norfolk,
3. Keshav Mills Co Ltd. v. Union of India,
4. Ridge v. Baldwin,
5. P.D. Agrawal v. State Bank of India,
6. Charan Lal Sahu v. Union of India,
7. Ajit Kumar Nag v. G.M. (PJ), Indian Oil Corprn. Ltd.
8. Maharashtra State Board of Secondary and Higher Education v. K.S. Gandhi & Ors.,
9. Maharashtra State Board of Secondary and Higher Secondary Education & Anr. v. Paritosh Bhupeshkumar Sheth & Ors.
10. Union of India v. Mohan Lal Kapoor,
11. Aligarh Muslim University v. Mansoor Ali Khan,
12. Fateh Chand v. Balkishan Das
13. Union of India v. Ramam Iron Foundry
14. SAIL v. Gupta Brother Steel Tubes

Facts of the Cases:

The appellant was granted the rights to collect the toll on Morena -Gwalior highway. He gave security of Rs. Rs.2,20,00,125/- via demand draft . He also gave the bank a guarantee of a similar amount for 15 months.
Meanwhile the authority received the complaint against the appellant. They cancelled the agreement and forfeited the security provided at the time of agreement. He also levied the penalty on the appellant.
The appellant here came to the court

Observations & Judgement of the court:

The common thread that runs through all these pronouncements is that an aggrieved party is entitled to receive compensation from the party who has broken the contract whether or not actual damage or loss is proved to have been caused by the breach and that the Court has, subject to the outer limit of the penalty stipulated, jurisdiction to award such compensation as it deems reasonable having regard to the circumstances of the case.
Hence the Writ was rejected

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