sumit
(Querist) 25 July 2013
There was a contract between two parties. The other party was unable to complete the work in the stipulated time and the reason behind this were the first party who had assigned the contract.Now as the other party was unable to complete the contract the first party is asking for compensation for damages suffered in the form of penalty. So my question is can damages be asked by way of penalty and any landmark decsion in the same context?? thanks !!
Dr. Jyothi Vishwanath
(Expert) 25 July 2013
If the first party has prevented the second party from complete the task within the stipulated time, then the second party can claim extra time under transfer of property act, 1882. First party cannot claim compensation if his mischief is proved in court.
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