Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Forfeiture Of 'Earnest Money' Is Not Penal In Ordinary Sense So As To Apply Section 74 Contract Act : Supreme Court
Corporate Law & Governance
In an important contract law interpretation, the Supreme Court ruled that forfeiture of earnest money isn't penal under Section 74 of the Contract Act. The judgment differentiates between genuine pre-estimates of damage and punitive penalties, providing clarity to commercial transactions. The ruling is expected to reduce litigation in real estate and government contracts where earnest money disputes are common.
