Section 62

Section 62 of the Indian Contract Act, 1872, provides that the compensation awarded in a suit for breach of contract shall be reasonable and shall not exceed the amount, if any, expressly stipulated by the parties as the amount to be paid in case of such breach, nor the amount, if any, which the court, having regard to the circumstances of the case, considers to be the reasonable amount of compensation. The section further provides that in the absence of any express stipulation, the court shall determine the amount of compensation which is reasonable. The Bombay High Court has held that the amount of compensation awarded under this section should be such that it would put the injured party in the same position as if the contract had been performed. (Kumar v. Hariram, AIR 1961 Bom 134).