The Calcutta High Court permitted a Rs 60 lakh consultancy claim by emphasizing the performance of services despite the absence of a formal contract, invoking principles of quantum meruit.
Calcutta HC Upholds Consultancy Claim Under Quantum Meruit Principles
The Calcutta High Court has affirmed a Rs 60 lakh consultancy claim, citing the consultant's issuance of TDS deductions and income tax invoices as evidence of continuous professional engagement, despite the absence of a formal contractual agreement. The court referred to Section 70 of the Indian Contract Act, emphasizing that valuable services rendered warrant compensation.
This ruling underscores the enforceability of claims based on actual performance rather than strict contractual terms, emphasizing the concept of quantum meruit in Indian contract law. The court recognized the consultant's non-gratuitous services as beneficial to the corporation.
This decision holds broad implications for practitioners in commercial law and consultancy services, illustrating the potential for recovering fees in similar scenarios where formal contracts are missing. Legal professionals should advise clients on establishing documentation of service delivery to support claims for remuneration.
Citations
- Calcutta HC Order (2026) Tax Reporter Page
