Issue for consideration
In the instant appeals, the order passed by the Division Bench of the High Court, which partly interfered with an arbitration award by upholding the findings of the Single Judge of the High Court to the extent the award granting damages for certain period, but set aside the award for the balance period, is challenged. Arbitration – Award of damages – Interference with – Award of damages for breach of contract for certain periods – Upheld by the Single Judge of the High Court, however, the Division Bench upheld the findings, to the extent the award granted damages for certain period, but set it aside for the balance period – Correctness: Held : As regards first period, conclusions of courts below upheld and does not call for interference – As regards the second period, the respondent made no attempt to produce a copy of the canalisation order before the tribunal nor intimated the claimant its inability to continue with the arrangement – Nothing was shown to prevent the respondent from communicating the said aspect at the earliest point of time – Thus, no interference called for – Furthermore, the measure of damages has to be in accord with s. 73, i.e. the market price of goods on the date of the breach, less the contract price – As regards, the award for the balance period, the Division Bench held that the failure to produce the best evidence that the claimant possessed in the form of contracts for the balance quantity and the payments received as proof of damage suffered and the shipping arrangements as well as the shipments as billed from time to time with full particulars, disentitled it to any compensation for the later period, which is in accordance with law – Impugned judgment applied the correct principles of law, in partly setting aside the award – As regards, the rate of interest, there have been concurrent findings – Contract Act, 1873 – s. 73. [Paras 14-16, 18-21]
As published in the Supreme Court Reports, Supreme Court of India.
Text from the Indian Supreme Court Judgments open data set (Dattam Labs),
CC BY 4.0.
