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IN THE HIGH COURT OF KERALA AT ERNAKULAM
MOHAMMED NIAS C.P.
Malabar Cements Ltd. – Appellant
Versus
Uma Minerals – Respondent
| Table of Content |
|---|
| 1. plaintiff's action to claim unpaid amounts due to defendant's breach. (Para 2 , 3) |
JUDGMENT :
Mohammed Nias C.P., J.
The defendant in O.S. No. 55 of 1990 on the files of the Principal Sub Court, Palakkad, is the appellant herein.
2. A suit was instituted for the realisation of money by the respondent herein, a partnership firm which was a wholesale dealer in industrial minerals. The plaintiff alleged that they had entered into an agreement with the defendant/appellant for the supply of sweetener lime stones at the rate of 100 to 150 metric tonnes per day to be increased to 300 metric tonnes necessary for the manufacture of cement, as per Order dated 28.04.1998. On the request of the defendant, the plaintiff had identified good limestones from Cuddappa and Dronachalam and a report was sent to the defendant quoting the ex-mine rates given by the Andhra Pradesh Government.
3. The plaintiff later informed the defendant, through a letter dated 16.07.1988, that the materials could be moved out of Andhra Pradesh only on payment of mineral rights tax. Accordingly, the defendant amended the purchase order and agreed to pay the extra mineral rights tax and surcharge in addition
The court emphasized that proof of actual damages is essential for recovery under liquidated damages, aligning with contractual principles.
A claimant cannot assert frustration of contract based on force majeure conditions if those conditions were previously contemplated and stipulated in the contract.
Actual damages must be proved for recovery in breach of contract. Clauses implying penalties cannot be enforced without valid demonstration of loss.
Arbitration Award - An Award however can be interfered with if it is found to be vulnerable under any of the grounds in Section 34 including being in contravention with the fundamental policy of Indi....
Point of law: When a contract has been broken, if a sum is named in the contract as the amount be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the....
Claim for damages will remain confined to what is expressly provided under Agreement.
Liquidated damages must be genuinely reflective of actual loss; their retention without proof of damage is unjustified under relevant contract provisions.
The court reaffirmed that a party's failure to raise specific contractual defenses during arbitration precludes them from asserting those defenses in subsequent petitions, maintaining the integrity o....
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