Karnataka State Electronics ... vs Pinaka Informatics Pvt Ltd on 25 September, 2024
Batliboi Environmental Engineers Limited vs. Hindustan
Petroleum Corp Ltd and Another, 2021 (2) SCC 375, where in
Hon'ble Supreme court held that
Arbitral tribunal in the present case has given
complete go by to these principles well in place,
overlooked care and caution required and taken a one-
sided view grossly and abnormally inflated the
damages. The figures quoted in paragraph 11 supra
show the over- statement and aggrandizement in
awarding Rs. 1,57,37,666/-, towards loss of overheads
and loss of profits/profitability, in a contract of Rs.
5,74,35,213/-. Rs.1,21,95,859.68/- was paid for the
work done within the term. Rs. 2,92,07,619.13 was
paid for the work done post the term. Thus, Rs.
4,14,03,478.81/- was paid for 80% of the work. The
balance was Rs.1,14,87,042.00/. The amount awarded
28
Com.AP.No.102/2021
towards loss of overheads and profits/profitability is
Rs.1,57,37,666/-. No justification for computation of
the loss is elucidated or can be expounded. Even if one
were to rely upon the chart given by the BEEL, and
ignore the contradictions in findings, the amount
awarded is highly disproportionate and exorbitant. It is
clearly a case of overlapping or at least a part doubling
of the loss/damages.