In most disputes, when claims are made to collect debt under the contract, the plaintiff demands to collect a penalty. Moreover, often the amount of the penalty collected is so significant and comparable to the amount of debt that it can affect the financial condition of the defendant. The Civil Code of the Russian Federation at the same time allows to reduce the amount of the penalty. How in practice is it possible to significantly reduce the amount of the penalty recovered?

Problem of reduction of penalties by courts under Article 333 of the Civil Code