Reviewed case brief

Kailash Nath Associates v Delhi Development Authority

(2015) 4 SCC 136

(2015) 4 SCC 136 · Supreme Court of India

section-74earnest-moneyforfeitureliquidated-damagesDDA
Court
Supreme Court of India
Year
2015
Subjects
Law of Contract I
Reviewed
2026-08-02

Rule established

Forfeiture of earnest money under Section 74 is permissible only where the forfeiting party proves loss, or where the amount is a genuine pre-estimate of damage; unconscionable forfeiture without proof of loss is not sustainable.

Facts

    Issues

      Held

        Ratio decidendi

        How to use it in an exam

        Editorial source

        (2015) 4 SCC 136; reaffirms Fateh Chand

        Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.