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THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Vijay Bishnoi, N. Unni Krishnan Nair
Rungta Projects Ltd. – Appellant
Versus
Coal India Ltd. – Respondent
JUDGMENT & ORDER :
N. Unni Krishnan Nair, J.
Heard Mr. M. Z. Ahmed, learned senior counsel, along with Ms. B. Dutta, learned senior counsel, assisted by Mr. A. M. Dutta, learned counsel, appearing on behalf of the appellants in WA No. 321/2018 and WA No. 338/2018, and for the respondents in WA No. 287/2022; as well as Mr. Pandey Neeraj Rai, learned counsel, along with Mr. A. Goyal, Mr. A. Choudhury, and Mr. D. Rathi, learned counsels, appearing on behalf of the appellant in WA No. 287/2022, and for the sole respondent in WA No. 321/2018 and WA No.338/2018.
2. The above-noted writ appeals have been preferred by the appellants, herein, presenting a challenge to the common Judgment & Order, dated 19.07.2018, passed by the learned Single Judge in WP(c)6867/2013, and WP(c)5585/2015. The appellant in WA No. 287/2022, has presented an additional challenge to the order, dated 19.06.2019, passed by the learned Single Judge dismissing Review Petition No. 88/2019, thereby, rejecting the prayer of the appellant, therein, for grant of interest with regard to the dues receivable by it.
3. The facts leading to the institution of the above-noted writ appeals, is briefly noticed, as under:
3.1 WRIT APPE
Liquidated damages under contract law must be justified by actual loss; mere failure to complete work does not suffice without quantification of damages.
Actual damages must be proved for recovery in breach of contract. Clauses implying penalties cannot be enforced without valid demonstration of loss.
The court held that the respondent's demand for compensation was unjustified as no loss was incurred due to short lifting of coal. The court restrained the respondent from invoking the bank guarantee....
An authority must adhere to contract terms, including timely communication of penalties and an opportunity to rectify, or face quashing of arbitrary demands.
Arbitration Award - An Award however can be interfered with if it is found to be vulnerable under any of the grounds in Section 34 including being in contravention with the fundamental policy of Indi....
The court emphasized that for liquidated damages to be enforceable, the claimant must prove actual loss and the clause must represent a genuine pre-estimate of damages.
The obligation of the state to act fairly and reasonably in contractual disputes, and the importance of respecting the specific terms of a contract.
Section 8 of Act is an example of referring parties to arbitration.
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