Wednesday, 29 October 2014

If a contract contains any stipulation for transfer of property in case of breach of such contract, which is in the nature of penalty, the contract cannot be enforced




Contract – If a contract contains any stipulation for transfer of property in case of breach of such contract, which is in the nature of penalty, the contract cannot be enforced 2014(5)ALT 608- CRP 1578 of 2009 and AS 2443 of 1999 date 27-12-2013 M. Ali baig Vs Kottalla Sanjeeva Reddy (Case on - Loan repayment agreement- in case of failure to get land registered on his name)
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In case of Agreements of sale in respect of open lands and no constructions are existing thereon, it is only Article 6(A) of Schedule 1(A) of the Indian Stamp Act, 1899, applies but not Article 6(B) of Schedule 1(A) of the Indian Stamp Act, 1899.

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