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march 1962

Supreme Court of India · 1962-03-05

SIR CHUNILAL V. MEHTA AND SONS, LTD. vs THE CENTURY SPINNING AND MANUFACTURING CO., LTD.

Citation / case number
SC 1957/60181
Court
Supreme Court of India
Petitioner
SIR CHUNILAL V. MEHTA AND SONS, LTD.
Respondent
THE CENTURY SPINNING AND MANUFACTURING CO., LTD.
Author
SINHA, BHUVNESHWAR P.(),KAPURL.,HIDAYATULLAH, M.,SHAHC.,MUDHOLKARR.
Bench
SINHA, BHUVNESHWAR P.(CJ),KAPUR, J.L.,HIDAYATULLAH, M.,SHAH, J.C.,MUDHOLKAR, J.R.

Judgment text excerpt

The Supreme Court held that the case involved a substantial question of law under Article 133(1) regarding the interpretation of a contract between the appellants and respondents. The Court clarified that a substantial question of law is one that affects the rights of the parties and is not free from difficulty. It ruled that the appellants were entitled to liquidated damages of Rs. 6,000 per month as specified in Clause 14 of the agreement, rejecting the claim for 10% of gross profits. The High Court's decision was overturned, affirming the appellants' right to damages as per the contract terms.

SIR CHUNILAL V. MEHTA AND SONS, LTD. vs THE CENTURY SPINNING AND MANUFACTURING CO., LTD. · Niyam