This volume of the Supreme Court Cases (SCC), Part 3 of Volume 1, embodies a landmark case decided by the Supreme Court on the challenge to execution of award, remedies for breach of contract, and customs duty on electrical energy.
Arbitration and Conciliation Act, 1996 — S. 36 — Limited scope of challenge to execution of award under S. 47 CPC: Law clarified on limited scope of challenge to execution of award under S. 47 CPC, [MMTC Ltd. v. Anglo American Metallurgical Coal (P) Ltd., (2026) 3 SCC 99]
Contract and Specific Relief — Remedies/Relief — Remedies for Breach of Contract — Damages — Stipulated Damages, Forfeiture/Penalty Clauses and Earnest money/Security deposits — Clause whether in the nature of penalty: Adoption of Cavendish Square test, 2016 AC 1172 (UKSC) which affords greater respect for party autonomy and emphasises that where a clause does not represent the genuine pre-estimate of loss, it cannot be regarded as penalty if there is “commercial justification” for it. Law clarified on applicability of test propounded in Cavendish Square, based on “commercial justification”, namely: (a) Whether any “legitimate business interest” is protected by the clause (first limb)?; and (b) If so, is the provision made in the clause “exorbitant, extravagant or unconscionable” or is there some wider “commercial or socio-economic justification” for the clause (second limb)?, [BPL Ltd. v. Morgan Securities & Credits (P) Ltd., (2026) 3 SCC 1]
Customs — Refund — Customs duty paid on electrical energy cleared from Special Economic Zone (SEZ) to Domestic Tariff Area (DTA) — Refund of: Imposition of customs duty on electrical energy cleared from Special Economic Zone (SEZ) to Domestic Tariff Area (DTA), not permissible. Refund of collected amount, directed, [Adani Power Ltd. v. Union of India, (2026) 3 SCC 143]