Alhuwalia Contract India Ltd. filed an appeal against Union of India in Delhi HC challenging arbitral tribunal’s decision where it refused to grant the damages for the loss of profits suffered under Section 34 of the Arbitration and Conciliation Act. It also contended that the relevant documents were presented before the tribunal to support its claim for the loss of profits.
In contrary to the arguments presented by the appellants, the Delhi High Court bench comprising of Justice S.Ravindra Bhat and Justice S.P.Garg observed that it is necessary for the parties to present some worthwhile or material evidence in order to claim damages. It also added that the award cannot be granted without the proof of having suffered injury.
Hence, the court dismissed the case stating that the cumulative effect of the award is based upon a certain formulae under the contract which is duly complied with by the respondents and apart from the questioning line adopted by the appellants, there is no worthwhile evidence on the basis of which it could grant award for the claim of general loss of profits.
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