Document Fragment View
Fragment Information
Showing contexts for: consequential damage in M/S. Ncc Limited vs M/S. Elecon Epc Projects Limited on 23 April, 2025Matching Fragments
28. Opportunity costs, as a consequential damage, is a remedy to which every business person is entitled to in commercial contracts. The expectation aligns with the doctrine of business prudence and the primary objective of a person to enter into commercial transactions with another.
29. The award of 5 Crores must also be assessed against the respondent No.1's claim of 18.30 Crores which approximately represented 10% of the total project cost of 183 Crores. The Tribunal employed Hudson's formula (without specifically naming it) which is recognised as a fail-safe methodology for assessing damages for loss of profit in major contracts arising from competitive tenders which has been judicially endorsed in McDermott International Inc Vs. Burn Standard Limited 2 . Hudson's formula calculates costs by using the percentage of head office overheads and profits specified in the contract, (2006)11 SCC 181 multiplied by the contract sum, divided by the contract period and further multiplied by the period of delay in days.