DAMAGES UNDER SECTION 73 OF THE INDIAN CONTRACT ACT, 1872

20 நவ., 2022

What are Damages: Damages are monetary compensation allowed to the aggrieved party by law for the loss or injury he suffered for the breach of contract.A breach of contract occurs when a party entered into a contract fails to fulfill their promised obligations.

ESSENTIAL ELEMENTS TO CLAIM DAMAGES:

There are some essential elements which are to be proved by the party claiming the compensation for breach of contract. They are as follows,

A valid contract has to be there for making such a claim.
Another party to the contract must have breached the contract.
Due to such breach of contract, the party claiming must have suffered the loss.

In the case of Jalpaiguri zilla Parishad vs. Shankar Prasad Halder the apex court has observed that damages can be given only for the actual loss and not for the remote or indirect loss.

Section 73 of the Indian Contract Act, 1872 provides compensation for the loss or damage caused by the breach of contract.

GENERAL OR ORDINARY DAMAGE:

These are the damages which are payable for the loss arising naturally and directly as a result of breach of contract. This damage is also known as proximate or natural damage.

ILLUSTRATION:

X agrees to sell and deliver 10 bags of onion to Y for Rs, 5000 after two months. On the date of delivery, the price of onion increases and X refuses to perform his promise. Y purchases 10 bags of potatoes for Rs.5,500. He can receive Rs 500 from X as ordinary damages arising directly from the breach.

In the case of Hadley vs. Baxendale (1854), Plaintiff's flour mill was stopped due to the breakdown of a crankshaft, he delivered it to the defendant, it has to be taken to a manufacturer to copy it and make a new one. Plaintiff didn't know to the defendant that delay would result in a loss of profits. By some neglect on the part of the defendant the delivery of the shaft was delayed. House of Lords held that the defendant was not liable for loss of profit, since the planintiff didn't disclose the defendant that the mill was closed for want of shaft; if the plaintiff informed then defendant could have made althernative arrangements for quick transportation of the shaft.

SPECIAL DAMAGES:

Also called consequential damages, covers any loss incurred because of special circumstances or conditions that are not ordinarily predictable. To obtain this type of damage, the non breaching party must prove that the breaching party knew of the special circumstances or conditions at the time of the contract was made.

ILLUSTRATION:

X hired services of Y, a goods transporter, to deliver a machine to his factory urgently. X also informed that his business has stopped for want of the machine. However, X delayed it, Y missed out on a huge order since he didn't have the machine with him. X can claim compensation from Y. The compensation amount will include the amount of profit he could have made by running his factory during the period of delay.

VINDICTIVE OR EXEMPLARY DAMAGES:

Where breach of contract results in loss of credibility of one party besides damages, the court may order for payment of exemplary damages. These damages are allowed only

In case of breach of marriage
Dishonour of a cheque by banker wrongfully

This damage is intended to punish the defendant and to prevent others from acting in a similar manner.

ILLUSTRATION:

Here X is a business man. He issues a cheque for his next order. He has sufficient funds in his account but the bank mistakenly dishonours the cheque. X files a suit claiming compensation for damages to his reputation. The Court awards a nominal amount as damage.

NOMINAL DAMAGES:

Nominal damages simply means "very small". Where the injured party has not suffered any damages or loss by reason of breach pf contract, the court may award very nominal sum as damage. This type of damage is awarded if there is an infringement of legal right. The amount can be as low as Re. 1

SUBSTANTIAL DAMAGES:

They are awarded when the extent of breach of contract is proved but there are uncertainities regarding calculation of damages. In such types of damages there is a complete failure in performing the terms and conditions of the contract at the end of one party.

LIQUIDATED DAMAGES:

In the case of liquidated damages, the parties to the contract fix a certain amount for the compensation.

These damages are paid out in the case of a breach of contract, and are a pre-estimated and spelled out in advance when the contract is signed.

ILLUSTRATION:

If X makes a contract with Y to build a temple that they need for use by a certain date, they could include a provision in the contract that Y must pay Rs.500 per day for every day longer it takes to finish the building than the date which is mentioned in the contract.

UNLIQUIDATED DAMAGES:

It is not pre-agreed and amount of money is to be determined by court by taking all facts into consideration. Damages that are claimed which are unforseeable is called as unliquidated damages.

What are Trade Winds? - UPSC

Trade winds are a type of wind system that blows in a specific direction and is driven by global temperature and pressure differences. These winds have a major impact on global weather patterns and maritime trade routes, and have played a significant role in the development of civilizations throughout history.

For the UPSC exam, it is important to understand the basic characteristics and patterns of trade winds, as well as their impact on various aspects of the world, including agriculture, industry, and global trade. By studying the role of trade winds in history and the modern world, you can better understand the forces that shape our world and be well-prepared for questions about trade winds on the UPSC exam.

What are winds:

Wind is moving air and is caused by differences in air pressure within our atmosphere. Air under high pressure moves toward areas of low pressure. The greater the difference in pressure, the faster the air flows.

Trade Winds

Now we know that difference in air pressure creates wind. See at the equator the sun warms the Water and Land more than any place of our planet. So this intense heat makes the air to rise up and they travel towards the poles. This is actually called low pressure system. Likewise air from Poles which are cold and high pressure travel towards the equator.

Also let's know about prevailing winds. These are winds that flow over a single direction. Generally these prevailing winds blow from east to west because of Coriolis effect (A force caused by rotation of earth).

Trade winds are prevailing winds which are predictable by nature and thus these were used by ships in the ocean to sail across continents. These winds blow from East but due to the influence of Coriolis force they flow from the direction of North east in the Northern Hemisphere and from South East in the Southern Hemisphere.

Koronivia Joint work on Agriculture - UPSC Explainer

18 நவ., 2022

Koronivia joint work on Agriculture (KJWA) gains it's importance as India opposes the draft text on agriculture, saying the rich developed nations do not want to change their lifestyle to reduce emissions and are "searching for cheaper solutions abroad" It also cited that " developed countries are blocking a pro-poor and pro-farmer decision by insisting on expanding the scope of mitigation to agriculture, thereby comprising the very foundation of food security in the world". [Source: PTI]

What is Koronivia Joint work on Agriculture:

Agriculture occupies a central position when it comes to climate change. It is both highly vulnerable to the impacts of Climate change inspite being a net contributor to greenhouse gas (GHG) emissions. In light of this discussions began in 2011 and Koronivia Joint work on Agriculture (KJWA) was established during COP23, 2017 to work on a solution. The KJWA is the only programme under UNFCCC to focus on Agriculture and Food security.

This work integrates Soil, Nutrient Use, Livestock, Socio-economic and food security dimensions of the climate change.

A Study on Constitutional Doctrines - porul.in Explainer

22 அக்., 2022

A Doctrine is a principle, theory, or position that is usually applied and upheld by Courts of Law. See a Doctrine can either be a rule, theory or tent of law. In Indian Constitutional law, there are different judicial doctrines that develop over time as per the interpretation given by the judiciary. Some of the important judicial doctrines are discussed here.

DOCTRINE OF BASIC STRUCTURE:

Actually, There is no mention of the term Basic Structure in the Constitution of India. Then ask why should Basic Structure be called a Doctrine?, Because it was given through the Kesavananda Bharati case (1973) of the Constitution Bench of Supreme court. Though the bench didn't clearly mention what Basic structure really consists of, it gave us an idea. Infact it turned to become a bedrock of our constitution, protecting it from parliament changing some core features of the constitution like Secular nature, Federal character etc through amendments. For starters Parliamentary Democracy, Fundamental Rights, Secularism, Federalism, judicial review, etc., are all held by courts as the basic structure of the Indian Constitution. This doctrine actually helps to protect and preserve the spirit of the Constitution Document.

ORIGIN:

The origins of this basic structure are found in the German Constitution, which after the Nazi regime, was amended to protect some basic laws.

IMPORTANT JUDGEMENTS:

In Kesavananda Bharati case 1973, the Supreme Court of India held for the first time that the parliament has the power to amend any part of the constitution but it cannot alter the "basic structure of the constitution".
It was reaffirmed by the Indira Nehru Gandhi vs Raj Narain case (1975).The SC struck down the 39th Amendment Act as it was against the principle of separation of powers. It placed the disputes relating to the president, Vice President, Prime Minister and Speaker of Lok Sabha beyond the jurisdiction of all Courts.

3. This Basic structure Doctrine was strengthened by Minerva Mills case, 1980 and later in the Waman Rao case,1981. In this case the SC looked into the validity of Article 31A and Article 31B of the Constitution of India with respect to the doctrine of basic structure.

DOCTRINE OF SEPARATION OF POWERS:

It mainly signifies the division of powers between various organs of the state, i.e., the executive, legislature and judiciary. This Doctrine is based on the philosophy of trias politica. The three principles of this philosophy are:

One organ should not form part of the other 2 organ (Judiciary cannot be a part with executive and legislature).
One organ should not interfere in working of the other organ (Executive cannot interfere in legislative work).
One organ should not exercise the function of the other organ. (Legislature cannot perform duties of judiciary).
Article-50 of the Directive Principles of the State Policy (DPSP) puts an obligation over the state to separate the judiciary from executive. This article says,

"The State shall take steps to separate the judiciary from the executive in the public services of the State."

IMPORTANT JUDGEMENTS:

In Ram Jawaya v. State of Punjab the SC held that the Doctrine of Separation of Power was not fully accepted in India.
In Indira Nehru Gandhi v. Raj Narain (1975), the SC held that the separation of powers is a part of the basic structure of the Constitution. None of the three separate organs of the Republic can take over the functions assigned to the other.

DOCTRINE OF PITH AND SUBSTANCE:

Pith means "True Nature" and Substance means "the most important or essential part of something". There can be circumstances in which subject matter of list 1 (state legislature) clashes with the subject matter of list 2 (union legislature). Hence, this doctrine is applied in this kind of situation. "The Doctrine of Pith and Substance" is applied to determine whether a particular law relates to a particular subject mentioned in one list or the other.

Apart from its applicability in cases related to the competency of the legislature (Article 246), this doctrine is also applied in cases related to Repugnancy in laws made by Parliament and laws made by the State Legislature (Article 254). (Repugnancy is basically when two pieces of legislation have a conflict between and when are applied to the same facts but they produce different outcomes or results). This doctrine is employed in such cases to resolve the inconsistency between laws made by the Centre and the Legislature.

ORIGIN:

The origin of this doctrine lies in Canada and in India it came to be adopted in the pre-independence period, under the Government of India Act, 1935. This Doctrine is firmly supported by Article 246 of the Constitution and the Seventh Schedule.

IMPORTANT JUDGEMENT:

In State of Bombay Vs. F.N. Balsara, was a case in which Bombay Prohibition Act was challenged on the grounds that the prohibition of liquor on the borders was a matter of Central Government. The act was held valid by the court, it fell under the State list though it was impacting the liquor.
Another important case for this Doctrine in Prafulla Kumar Mukherjee v. Bank of Khulna.

DOCTRINE OF SEVERABILITY:

It is also known as "Doctrine of Separability" and protects the fundamental rights of the citizens. As per clause (1) of the Article 13 of the Constitution, if any of the laws enforced in India are inconsistent with the provisions of fundamental rights, they shall be made void.

The whole law/act would not be held invalid, but only the provisions which are not in consistency with the Fundamental Rights. According to this Doctrine, if there is any offending part in the statute, then the offending part can be declared as void, not the entire statute and the valid part can be kept.

If the valid and invalid part are so closely mixed up with each other that it cannot be separated then the whole law or act will be held invalid.

ORIGIN:

This Doctrine found its roots in England in the case of Nordenfelt v. Maxim Guns and Ammunition Company Ltd., here the issue was related to a Trade clause. Here the disputed clause was severable; and hence only a part of it become void. In this case, however, it was not exactly the doctrine of severability; it was "doctrine of blue pencil".

IMPORTANT JUDGEMENTS:

In the case of RMDC vs. UOI, SC stated that doctrine of severability is a matter of substance and not of form.
In A.K. Gopalan v. State of Madras (1950), the SC held that in case of inconsistency to the Constitution, only the disputed provision of the Act will be void and not the whole of it. The Court found that Section 14 of the Preventive Detention Act to be violative of Article 14 of the Constitution. Hence, the Section 14 of the Act was severed and held void, while the other provisions remain to be valid within the Statute.
In State of Bombay v. F.N. Balsara(1951), the disputed statute here was Bombay Prohibition Act, where the unconstitutional provision was held void and inoperative while the other part was not damaged and the Statue was stille be remaining in the force.

DOCTRINE OF ECLIPSE:

It is applied when any law/act violates the Fundamental Rights. This means the law becomes dormant and makes it unenforceable but not void ab initio (Having no legal effect from the origin).

If the said fundamental right is amended, in that case, the dormant law becomes active. It is only against the citizens that these laws/acts remain in a dormant condition but remain in operation as against non-citizens who are not entitled to fundamental rights. Doctrine of eclipse is contained in Article 13(1) of the Indian Constitution. The Doctrine of eclipse does not apply to post-constitutional laws.

IMPORTANT JUDGEMENTS:

The first case in which this doctrine was applied was Bhikaji vs. State of Madhya Pradesh(It was applied to pre-constitutional laws).
The extension to the post-constitutional law was stated in the case of DulareLodh vs ADJ Kanpur.

Minimum Support Price (MSP) - UPSC

26 செப்., 2022

At the beginning of every sowing season, the Government of India declares Minimum Support Price for 22 crops at which the government purchases from farmers/producers. It gives a guaranteed price and assured market to the farmers by protecting them from Market fluctuations and imperfections.

Minimum Support Price :

During the mid-1960 when the Green revolution was helping the government was fighting against the food deficit that India faced, the government realised that unless the crops were guaranteed a minimum support price the farmers won't be motivated to plant high-yielding varieties of Paddy and Wheat crops. MSP was fixed beginning with Wheat.

The government of India sets MSP twice a year. It is recommended by the Commission of Agricultural Costs & Prices which is under the Ministry of Agriculture and Farmers Welfare. The recommendations are of advisory nature and it is not binding on the government.

Calculation of MSP:

The commission takes various factors while calculating the MSP like

Cost of Production
Trends in Market Prices
Changes in Input prices
Input-output Price Parity
Effect on the cost of living
International price situation
Demand & Supply
Effect on issue prices & Implications of subsidy

What is Constitution (103rd Amendment) Act, 2019 in Indian Constitution? - Porul

20 செப்., 2022

The Constitution (103rd Amendment) Act introduces reservations for economically weaker sections (EWS). This amendment provides reservations in central government and private educational institutions (except minority educational institutions) for admission and recruitment in central government jobs.

Constitution (103rd Amendment) Act, 2019

The 103rd amendment was enacted to promote the welfare of the poor who are not covered under the 50% reservation policy for SCs, STs and the OBCs. The act enables the Centre and the state governments to provide reservations for the EWS. Since this is a law on subjects in the Concurrent list, the individual state governments need to ratify it before adopting it.

Eastern Economic Forum (EEF) - UPSC

14 செப்., 2022

Why in the news?

Prime Minister Thiru Narendra Modi participated virtually in the plenary session of 7th Eastern Economic Forum(EEF)

Eastern Economic Forum (EEF)

The Eastern Economic Forum was established by Russian President Vladimir Putin in 2015 to support and encourage the economic development of Russia's Far East and to expand international cooperation in the Asia-Pacific Region. During the opening day of the EEF 2022, the 2nd International Tiger Forum was held.

Eastern Economic Forum covers a wide range of topics including economic, political, and cultural relations between the Asia Pacific and Russia. For the UPSC exam, it is important to understand the key themes and goals of the Eastern Economic Forum, as well as its impact on the global economy. By studying the EEF, you can gain insights into the economic and political dynamics of the Asia-Pacific region and be well-prepared for questions about the forum on the UPSC exam.

While talking about the International North-South Corridor, The Chennai-Vladivostok Maritime Corridor and the Northern Sea Route Prime Minister Narendra Modi mentioned that "Connectivity will play an important role in the development of our relations in the future". So, EEF gains prominence in the Exams on the background of recent meetings held.

Prime Minister Modi during Eastern Economic forum

Source: Flickr

India - Eastern Economic Forum :

India has signed a number of agreements with Russia and other countries at the Eastern Economic Forum (EEF). Some of the key agreements that have been signed between India and the EEF include:

Investment cooperation agreement: In 2018, India and Russia signed an agreement to cooperate on investment projects in various sectors, including energy, infrastructure, and industrial development.
Energy cooperation agreement: In 2019, India and Russia signed an agreement to cooperate on energy projects, including the development of renewable energy sources.
Cooperation in the field of small and medium-sized enterprises: In 2017, India and Russia signed an agreement to cooperate in the field of small and medium-sized enterprises, with the aim of promoting entrepreneurship and innovation.

These agreements demonstrate the strong economic ties between India and Russia, and the importance of the Eastern Economic Forum as a platform for cooperation and collaboration between the two countries.