ONGC v. SAW Pipes
penalty clause section 74 contract act liquidated damages reasonable compensation
Held: Clarified that penalty clauses are not enforceable; courts award reasonable compensation.
Ratio decidendi
Penalty clauses under Section 74 of the Contract Act are not enforceable as written; courts award reasonable compensation.
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These judgments mention this one. Whether each followed, distinguished or doubted it is not recorded here — read them before relying on any of it.