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IN THE HIGH COURT AT CALCUTTA
SOUMEN SEN, BISWAROOP CHOWDHURY
State of West Bengal – Appellant
Versus
S.K. Maji – Respondent
Judgment :
Soumen Sen, J.
1. The present appeal arises out of an impugned judgment and order dated 25th February, 2021 passed by the learned Commercial Court at Asansol under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the said Act’).
2. Shorn of details the facts of the case enumerate that the respondent contractor carries on business under the trade name and style of M/s. S.K. Maji having its principal place of business in Tamluk, Purba Medinipur, executing various engineering works under contract with various departments including the state of West Bengal, which is the appellant herein.
3. The Government of West Bengal through the Superintending Engineer, Public Works Department, Paschim Medinipur published a notice inviting tender being N.I.T. No.15 of 2009-2010 on 24th February, 2010 for construction of District Health Administrative Building at Bankura at an estimated sum of Rs.1,69,25,089/-. Time for submission of tender was fixed on 29th March, 2010. The respondent contractor participated in the said tender and submitted his tender on the same date and within the stipulated time. The tender of the respondent contractor was accepted and
An arbitrator's award can be set aside if it is based on a fundamental breach of contract that ignores material clauses of the agreement, leading to a finding that is perverse and constitutes a paten....
(1) Setting aside arbitral award – Claim for damages, whether general or special, cannot as a matter of course result in an award without proof of claimant having suffered injury.(2) Binding Preceden....
The court upheld the arbitral award for loss of profits, affirming that failure to notify a contract's termination constituted a material breach, justifying compensation under the Indian Contract Act....
The court affirmed the limited scope of review under Section 34 of the Arbitration and Conciliation Act, allowing for setting aside awards only on grounds of patent illegality or if the award is perv....
The expectation of profit can be compensated in breach of contract cases without proving actual loss, as established in arbitration and contract law.
The need for evidence to establish loss of profits and the court's discretion to modify the interest rate as agreed upon by the parties.
The non-breaching party is entitled to damages that place them in a position as if the contract had been performed, with the awarded loss of profits upheld based on reasonable calculations.
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