Episode 1 - Liquidated Damages:
The application of liquidated damages clauses and Section 74 of the Indian Contract Act, 1872 has often confounded Indian lawyers. The introduction of Section 74 in the original Act and the 1899 Amendment have sought to digress from the common law position but however, after the decisions of the Supreme Court in Fateh Chand, Saw Pipes and Kailash Nath, questions still arise on the proper application of the doctrine. Is there a distinction between primary and secondary obligations in Indian law? Is there an absolute requirement to prove both the factum of loss and the extent of loss? Does the “commercial justification” of the parties to agree to a liquidated damages clause bear any relevance in Indian law? Is the decision of the Supreme Court in Kailash Nath sacrosanct and applicable across the board in all cases of liquidated damages?
These are some of the questions that are discussed in the podcast. All reading materials discussed are set out here Click Here
About the Speakers: Mr. Gaurav Pachnanda is a Senior Advocate, based in New Delhi, who practices before the Supreme Court and other courts and tribunals in India and abroad; with particular interest in the areas of commercial and corporate litigation, and arbitration. He is also a Door Tenant at Fountain Court Chambers, London. Ms. Renu Gupta is an advocate based in New Delhi and practising primarily in the Supreme Court and Delhi High Court. Her areas of interest include commercial law and she has also appeared in numerous arbitrations.
Moderator: Aditya Swarup is an advocate practising in New Delhi. He has also been an Assistant Professor at Jindal Global Law School, teaching contract law and commercial remedies.”