Breaching Party Can't Claim Loss of Profit: Key Indian Judgments

2025 0 Supreme(Telangana) 383

Brij Paul Singh, the Supreme Court dealt with breach of a works contract and of the contractor’s entitlement to damages for loss of profit consequent to the breach. ... According to counsel, damages cannot be awarded under section 73 of The Indian Contract Act, 1872, in the absence of evidence of loss of profits. 10.....

Rule B (1) (6) therefore cannot apply, as admittedly the article was procurable, and the loss of profits was not claimed as special damages in the statement of claim. The claim must, I think, be governed by rule A. ... I see no difference between a claim for loss of profits on a sub-contract and a claim for loss....

2023 7 Supreme 176

, the Arbitrator, on the other hand, proceeded to grant damages for loss of profit under Claim No. 12. ... As per established legal principles, the party responsible for the breach of the contract is liable for reasonably foreseeable losses. ... A claim for damages, whether general or special, cannot as a matter of c....

High Court Malaya Shah Alam

The entire loss of income ought to be that of the plaintiff's as D2 cannot benefit in view of its wrongdoings. The same reasoning applies to the plaintiff who cannot be allowed to profit more than what it would have otherwise been entitled to if the contract had not been terminated by Ophir. ... The fact that the Project Account appears to show that the FPSO Contract D2 performed for Oph....

2024 Supreme(SRI)(SC) 12710

CPC (2002) 1 SLR 126 in holding that a claim for loss of reputation cannot be made in an action for breach of contract, when in fact the said decision recognizes a claim in respect of loss of trade reputation? ... (ii) Did the learned High Court Judge err in holding that a claim for loss of reputation cannot be made....

High Court Malaya Kuala Lumpur

This cannot be awarded in a breach of contract claim. ... General Damages (Loss of Profit/Loss of Earnings From Other Projects); and 4. Cost. ... [54] It is trite law that the non-defaulting party is entitled to claim damages for the breach of contract by the def....

    The claim of Rs. 1,500 for loss of profit for the non-user of the engine is remote damages. Such damages, as they were the result of special circumstances which were not communicated to the plaintiff at the time of the contract, cannot be awarded?Hadley v. ... Damages ? Breach of contract- Special #HL_STA....

High Court Malaya Kuala Lumpur

Even when the Plaintiff decided to reduce such claim for loss of business profit to RM204,990.56 for the prototype MMS unit, and RM4,752,134.23 for the 4 additional MMS units, the same is made on the basis of misrepresentation, breach of contract, and breach of trust which bear no relevance to the Defendant's ... the infringing party or to grant damages#HL_END....

2023 0 Supreme(Mad) 1132

In the other cases relied upon by the learned counsel for the respondent it was a clear case of breach of contract by one party under which circumstances the Hon'ble Supreme Court as well as this Court has held that the plaintiff was entitled to claim damages under the head 'loss of profit'. ... On account of loss of profit, the Trial....

High Court Malaya Kuala Lumpur

[90] In the instant case, we find that the respondent has clearly failed to prove this loss it allegedly suffered from the appellant's breach of contract. ... Plenitude Holdings Sdn Bhd; [1994] 3 MLJ 777; [1995] 1 CLJ 15; [1995] 1 AMR 41 explained that in the assessment of damages for the breach of contract, the main objective is to place a party who ....

2021 0 Supreme(Del) 724

The said decision is not an authority for the proposition that a claim for loss of profit is required to be allowed without any evidence. However, the High Court denied the same as the appellant had not produced strict proof and primary documents for establishing the quantum of loss of profits. In that case, the High Court had found that the respondent had committed a breach of the contract and the appellant had established that it was entitled to claim damages for loss of profit.#HL....

2016 0 Supreme(AP) 158

In all these judgments, it was held that in the event of breach of contract committed by the defendants in relation to a works contract, the plaintiff contractor is entitled to claim damages towards loss of profit. In support of his contention, the learned counsel appearing for the appellants relied on G. Ramachandra Reddy v. Union of India (2009) 6 SCC 414, State of Andhra Pradesh v. T.V. Krishna Reddy (died) Per LRs, 2009 (2) ALT 575 (D.B.) and G.V. Malla Reddy and Co. v. A....

2012 0 Supreme(Bom) 33

Lastly, in the case of “Dwarka Das” (supra), also the contract was found to have been illegally rescinded by Government. The Apex court has held that the claim by contractor for recovery of amount as damages as expected profit out of contract cannot be disallowed on ground that there was no proof that he suffered actual loss to the extent of amount claimed on account of breach of contract.

Delhi

What would be the measure of profit would depend upon facts and circumstances of each case. The position when, in a works contract, the employer defaults or delays performance, or rescinds the contract without cause, can the contractor claim damages on account of loss of profit was first examined by the Supreme Court in A.T. Brij Paul Singh and Others Vs. State of Gujarat, (1984) 4 SCC 59. The court ruled that where, in the works contract, the party entrusting the work commits breach....

2010 0 Supreme(Cal) 656

The petitioner here says that the arbitrator should have adopted such thumb rule in the present case, In another judgment reported at (1977) 3 SCC 590 (Mohd. The petitioner relies on a judgment reported at AIR 1984 SC 1703 (A.T. Brij Paul Singh v. State of Gujarat) where, at paragraph 10 of the report, the Court accepted that an amount equivalent to 15 per cent of the value of the balance work which was not permitted to be executed “would not be an unreasonable measure of damages for loss of p....