Literal Meaning
How much amount.
Explanation & Origin
Quantum word literal meaning is how much amount. It is not used as single word there are is always a suffix to the word.
Explanation – Quantum is Latin words which mean how much amount. It can mean the amount for damages mostly in legal language. It is always used with a suffix to make the meaning more understandable.
Illustration
if a person incurs damages, the amount paid to him can be said in quantum.
Case Reference
In the case of Distributors (Baroda) Pvt. Ltd vs. Union Of India And Two Ors[1]According to the Bombay High Court, were descriptive of the items of income a included in the computation of the total income and were not indicative of the quantum of the amounts of the different items included in such computation and they did not, therefore, have the effect of cutting down the plain natural meaning of the words “any dividend received by it from an Indian company” which represented the quantum of income in respect of which exemption from super-tax was granted under the section. It is not at all unreasonable to construe the words “income so included” as meaning the quantum of income by way of dividends included in the total income of the assesse. These words in the context in which they occur have obviously reference to quantum of the income by way of dividends to which the average rate of income tax is to be applied. That quantum is defined by these words and in order to determine it, we have to ask the question: what is the income by way of dividends included in the total income and the answer can only be that it is income computed in accordance with the provisions of the Act.
In the case of Cloth Traders (P) Ltd., Etc. vs Addl. Commr. Of Income Tax[2] according to the High Court were descriptive of the items of income included in the computation of the total income and were not indicative of the quantum of the amounts of the different items included in such computation and they did not, therefore, have the effect of cutting down the plain natural meaning of the words “any dividend received by it from an Indian company” which represented the quantum of income in respect of which exemption from super-tax was granted under the section. This view, observed the High Court, not only followed logically and inevitably from the words used in the statutory provision, but was also in consonance with the object of the legislation, which was to prevent double taxation of the amount of dividend with the view to encouraging investment by companies in the share capital of other companies. These words were introduced merely to provide that the category of income in respect of which exemption from super- tax is claimed must be included in the total income and they were not intended to refer to the quantum of such income included in the total income for exempting it from super tax: they were descriptive of items of income included in the total income and were not indicative of the quantum of the amounts included under different items in the computation of the total income.
In the case of M/S. Alopi Parshad & Sons, Ltd vs The Union Of India[3] At the hearing of the appeal, counsel for the Agents sought to support the award on the plea that certain questions had been specifically referred to the arbitrators, and it was open to the arbitrators to make the award which they made, on the basis of quantum meruit. The High Court held that there was no specific reference of any questions of law to the arbitrators, and the decision of the arbitrators was not conclusive and was open to challenge, because it was vitiated by errors apparent on the face of the award. The High Court reversed the order passed by the Subordinate Judge, and set aside the award of the arbitrators, holding that there was no “legal basis for awarding any compensation” to the Agents for any loss which they might have sustained. This appeal has been filed with leave of the High Court. Agents were entitled to claim remuneration at rates substantially different from the terms stipulated, on the basis of quantum meruit. Compensation quantum meruit is awarded for work done or services rendered, when the price thereof is not fixed by a contract. For work done or services rendered pursuant to the terms of a contract, compensation quantum meruit cannot be awarded where the contract provides for the consideration payable in that behalf Quantum meruit is but reasonable compensation awarded on implication of a contract to remunerate, and an express stipulation governing the relations between the parties under a contract, cannot be displaced by assuming that the stipulation is not reasonable. It is, therefore, unnecessary to consider the argument advanced by Mr. Chatterjee that a claim for compensation on the basis of quantum meruit, is one which arises out of the agreement within the meaning of cl. 20. Granting that a claim for compensation on the basis of quantum meruit may be adjudicated upon by the arbitrators in a reference made under el. 20 of the agreement, in the circumstances of the case before us, compensation on that basis could not be claimed.
Edited by Vigneshwar Ramasubramania
Approved & Published – Sakshi Raje
Reference
[1] 1985 AIR 1585
[2] 1979 AIR 1691
[3] 1960 AIR 588
