Liquidated sum not to be granted without any proof


Delhi High Court has clarified that only where it is impossible to assess the compensation arising from the breach of an agreement, and the parties have agreed to a pre-determined compensation amount, not by way of penalty or unreasonable compensation, can the agreed amount be awarded as a genuine pre-estimate of loss suffered without at least proving a semblance of loss. An aggrieved party cannot claim that liquidated damages must be paid ipso facto.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at or Readers should not act on the basis of this information without seeking professional legal advice.