#Reasonable Compensation

The Delhi High Court held that forfeiture of earnest money under an Agreement to Sell is not automatic; the party retaining the deposit must prove actual legal injury and quantifiable loss under Section 74 of the Indian Contract Act. The court distinguished the K.R. Suresh precedent, ruling it inapplicable to simple recovery suits, thereby strengthening a vendee's right to recover earnest money absent proven damages.

ITAT Bangalore ruled that the reasonableness of honorarium paid to trustees of a charitable trust must be determined on a case-by-case basis under Section 13(1)(c) of the Income Tax Act. The tribunal remanded the matter to the Assessing Officer, emphasizing that blanket disallowance of trustee remuneration is impermissible without evaluating the duties performed and evidence submitted.

Supreme Court rules that in public utility projects, proof of actual loss is not required for awarding liquidated damages under Section 74 of the Indian Contract Act.