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Breach of Contract & Recovery

Non-payment, non-performance, broken promises — enforced with damages.

Indian Contract Act + CPC, 1872 / 1908 · Sections 73–75 damages · Order 37 summary suits

Overview

When the other side doesn't pay or doesn't perform, the law gives you more than a grievance: damages for the loss caused (Section 73), the agreed sum where a genuine pre-estimate was written in (Section 74), summary suits under Order 37 CPC for documented debts — a fast track where the defendant needs the court's leave even to defend — and interest under the Interest Act and your contract. Commercial Courts handle disputes above ₹3 lakh on faster timelines with mandatory pre-institution mediation that itself settles a meaningful share. The pattern that wins: a precise legal notice, filed fast, in the right forum.

Key Provisions — Indian Contract Act + CPC, 1872 / 1908

  • Section 73 — compensation for loss naturally arising from the breach; Section 74 — liquidated damages as a ceiling, reasonably applied.
  • Order 37 CPC — summary procedure for suits on invoices, written contracts and cheques: no automatic right to defend.
  • Commercial Courts Act — specialised courts and timelines for commercial disputes of ₹3 lakh+, with pre-institution mediation.
  • Contractual interest and the Interest Act make delay itself expensive for the breaching party.

What You Can Get

Recovery of dues with interest
Damages for losses caused
Summary-suit speed for documented debts
Settlement leverage from the first notice

How We Handle It

1

Breach Assessment

Contract, correspondence, and the money math — claim and forum chosen.

2

Legal Notice

A precise demand that many counterparties pay on — and that anchors the suit.

3

Mediation / Suit

Pre-institution mediation where mandated; summary or commercial suit otherwise.

4

Decree & Execution

Judgment enforced against assets, receivables and bank accounts.

Typical timeline: Notice 15–30 days · summary suits often 1–2 years · settlements cluster around filing.

Frequently Asked Questions

The contract was never signed — we just have emails and invoices. Can I still sue?

Yes. Offer, acceptance and performance over email/WhatsApp form a contract; invoices raised and part-payments received prove it. Summary suits frequently run on exactly this record.

They're a bigger company and are just ignoring us — is suing them worth it?

Size cuts the other way in court: bigger companies settle documented claims rather than risk decrees and reputational discovery. The notice-plus-filing pattern moves them where calls never will.

Legal Connect connects you with independent commercial advocates; we are not a law firm and this page is general information, not legal advice. Business enquiries are handled confidentially — call +91 22 6555 3444.

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