FCI vs M/S.BABULAL AGRAWAL

The Supreme Court upheld the Madhya Pradesh High Court's decision to modify the Trial Court's decree by allowing a deduction of 6% from the damages awarded to the plaintiff, M/s. Babulal Agrawal, for breach of contract by the Food Corporation of India under the agreement dated 12.2.1986. The Court clarified that the absence of a formal lease deed does not invalidate the contractual obligations and that the plaintiff was entitled to damages for the breach. The Court affirmed the Trial Court's award of Rs. 17,32,709/- in damages, along with interest at 6% per annum from the date of the suit.