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Reliance on the Emden Formula cannot be said to be against the law
prevailing in India as Sections 55 and 73 of the Indian Contract Act provided
only for entitlement to compensation and not the mode and manner in which
such compensation is to be quantified.
Clause 37 of the Main Contract between ONGC and BSCL has no
application as MII's claim is not for any consequential damage but for the
direct losses occasioned by BSCL's breach of contractual duty to honour its
time bound commitments. The said clause cannot be extended to the
obligations towards MII under the sub-contract as ONGC has no role to play
in respect of the breach of its obligations towards it by BSCL under the sub-
contract.