M/S Atc Foods Private Limited vs Union Of India & Others on 28 September, 2022
29. It is not the case of the present respondent buyer laid before
the Arbitral Tribunal that due to nature of contract, losses cannot
be easily calculated, so claimed liquidated damages as pre-
estimated damages were to be awarded as per Section 73 of The
Indian Contract Act, 1872; without proving and showing how
much loss has been caused. It had been argument of Ld. Counsel
for respondent/purchaser that due to non supply of contracted
material/goods by the petitioner, the whole process of
OMP (Comm.) No. 132/2021 M/S ATC FOODS PRIVATE LIMITED VS UNION OF INDIA & ORS. Page 28 of 37
procurement was disrupted. The quality of rice which was
required to be supplied to the Armed Forces could not be
procured by the nodal agency i.e., APO. Thereafter local units
had to procure alternate material/goods on adhoc basis across
India in small quantities which was not the equivalent to the rice
which the claimant/petitioner failed to supply and it had caused
damages to the respondents/buyers which cannot be collated and
quantified. The letter of termination of contract dated
15/01/2019, above elicited, does not contain averment of any of
those facts above said, which have been argued orally by Ld.
Counsel for respondents nor does that letter dated 15/01/2019 for
termination of contract by buyer/respondents finds any mention
of alternate quantity of supply/goods was procured by any local
units of respondents/buyers and such procured quantity of
supply/goods was not equivalent to the rice which
petitioner/claimant failed to supply. Even respondent/buyers did
not plead before Ld. Sole Arbitrator in arbitral proceedings nor
led any evidence to prove of having so procured any alternate
quantity/quality of supply/rice in any manner, so as to qualify any
risk purchase. No material was laid before Ld. Sole Arbitrator to
also reflect as to what alternate purchase of the supplies/goods
were done by the purchaser/respondents and the amount spent on
it was in any manner in excess of the amount contracted by
respondent/purchaser with the petitioner/contractor/supplier, so
as to put forth or lay any claim for suffering any loss due to non
delivery of contracted goods by petitioner/claimant/contractor.
Reliance of Ld. Counsel for respondents on the case of Ministry
of Defence, Government of India vs CENREX SP. Z.O.O. &
Ors. (supra) is misplaced; more so, when in the fact of the
OMP (Comm.) No. 132/2021 M/S ATC FOODS PRIVATE LIMITED VS UNION OF INDIA & ORS. Page 29 of 37
matter, quantification of loss for any alternate purchases done
was possible, for the purchaser/respondent.