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1963 (1) TMI 46 - SC - Companies LawWhether the plaintiff was entitled to forfeit the amount of ₹ 1,000/- which was paid as earnest money? Held that:- In the absence of any proof of damage arising from the breach of the contract we are of opinion that the amount of ₹ 1,000/- (earnest money) which has been forfeited, and the advantage that the plaintiff must have derived from the possession of the remaining sum of ₹ 24,000/-during all this period would be sufficient compensation to him. It may be added that the plaintiff has separately claimed mesne profits for being kept out of possession for which he has got a decree and therefore the fact that the plaintiff was out of possession cannot be taken into account in determining damages for this purpose.’ The decree passed by the High Court awarding ₹ 11,250/- as damages to the plaintiff must therefore be set aside. We direct that the mesne profits be computed at the rate of ₹ 140/per mensem from June 1, 1949 till the date on which possession was delivered to the plaintiff (such period not exceeding three years from the date of decree) together with interest at the rate of six percent on the amount accruing due month after month. The decree passed by the High Court will therefore be modified. It is ordered that the plaintiff is entitled to retain out of ₹ 25,000/- only ₹ 1,000/received by him as earnest money, and that he is entitled to compensation at the rate of ₹ 140/- per mensem and interest on that sum at the rate of six percent as it accrues due month after month from June 1, 1949, till the date of delivery of possession, subject to the restriction prescribed by O,20 r. 12 (i) (c) of the Code of Civil Procedure. Subject to these this appeal will be dismissed.
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