DWARAKA DAS versus STATE OF MADHYA PRADESH AND ANR.

DWARAKA DAS versus STATE OF MADHYA PRADESH AND ANR.

Correction under section 152 CPC cannot be used to grant pendente lite interest omitted in the original judgment unless the omission was accidental; in this case, the omission was not accidental and trial court erred in using section 152. However, the High Court was not justified in disallowing the appellant’s damages claim for loss of profits as the contract was illegally rescinded; granting 10% of the contract value as damages was reasonable.

Parties
Appellant: Dwarakadas; Respondent: State of Madhya Pradesh; Respondent: Anr.
Jurisdiction
India
Judgment Date
10 February 1999
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From Madhya Pradesh High Court
Outcome
Appeal partly allowed
Legal Topics
Correction of Clerical Errors Under CPC Section 152, Compensation for Breach of Contract, Award of Pendente Lite Interest, Damages – Loss of Expected Profit, Scope of Appellate Review in Damages Assessment
Civil Procedure Contract Law Correction of Clerical Errors Under CPC Section 152 Compensation for Breach of Contract Award of Pendente Lite Interest Damages – Loss of Expected Profit Scope of Appellate Review in Damages Assessment

Case Brief

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Parties

Dwarakadas

Appellant

State of Madhya Pradesh

Respondent

Anr.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From Madhya Pradesh High Court

Legal Issues

  1. 1 Whether omission to award pendente lite interest can be corrected under section 152 CPC
  2. 2 Whether High Court was justified in disallowing claim for damages as expected profit from a contract rescinded by the State
  3. 3 Proper measure for damages in case of breach of contract by rescission

Ratio Decidendi

Correction under section 152 CPC cannot be used to grant pendente lite interest omitted in the original judgment unless the omission was accidental; in this case, the omission was not accidental and trial court erred in using section 152. However, the High Court was not justified in disallowing the appellant’s damages claim for loss of profits as the contract was illegally rescinded; granting 10% of the contract value as damages was reasonable.

Court Disposition

Appeal partly allowed

Orders

  • Decree modified; appellant entitled to Rs. 24,783.33 with future interest at 6% per annum from the date of decree till realization.
  • Each party to bear their own costs.