In Brief
MTNL sought to adjust disputed amounts from bills owed to Tata Communications for telecommunications services under a 2008 Purchase Order. The Supreme Court affirmed TDSAT's ruling that when an express contract exists between parties, quasi-contractual remedies (like quantum meruit under Section 70 of the Contract Act) cannot be invoked to supersede the contract's terms. The contract fixed liquidated damages at a maximum of 12% of the contract value. MTNL had deducted a higher amount unilaterally. The Court held that contractual limits on damages are binding and final; MTNL could claim only up to 12% (approximately ₹25.83 lakh), and any excess must be refunded.
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