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Rule of measuring damages from the time of breach of contract is flexible

The Supreme Court in M/S. FORTUNE INFRASTRUCTURE vs TREVOR D’LIMA & ORS., while deciding on the damage claimed by the defendent from breach of contract held :-
“As per the settled law, the damages become due on the date when the breach of contract takes place, and are normally assessed by the reference to the time of breach. The aforesaid rule is based on the principle that the injured party is presumed to be in knowledge of the breach as soon as it is committed and at that time he can take appropriate measures of mitigation to control the loss flowing from the breach. The courts may deviate from the aforesaid rule and fix appropriate date in facts and circumstance of a case if aforesaid presumptions could not be established or it would not be reasonable to follow the rule.

“It may be noted that where there is non-delivery of the flat/house, and the developer has refused to provide alternative and equivalent accommodation, and the buyer lacks means to purchase a substitute from the market, then in such circumstances, damages would not be reasonable to be assessed on the breach date,” 

Article referred: http://www.livelaw.in/sc-asks-developer-pay-rs-2-27-cr-compensation-buyer-modifies-ncdrc-order-rs-3-65-cr-damages-read-judgment/

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