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1 - 8 of 8 (0.26 seconds)Mcdermott International Inc vs Burn Standard Co. Ltd. & Ors on 12 May, 2006
The
arbitrator calculated damages to be awarded by applying Hudson
formula taking 12.5% of the contract value over period of 45 months
extension to complete it. The Supreme Court in Mcdermott (supra)
declared the law regarding such calculation, in the facts and
circumstances of the case, to fall within domain of the arbitrator.
Furthermore, said Court has also declared that sections 55 and 73 in
Contract Act, 1872 do not lay down mode or manner as to how or in
what manner computation of damages or compensation has to be made
and there is nothing in Indian law to show that any of the formulae
adopted in other countries is prohibited in law or inconsistent with
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Indian law.
Section 55 in The Indian Contract Act, 1872 [Entire Act]
Tarun Mahindroo vs H.P. Power Corporation Limited on 8 March, 2017
10. The learned Single Judge in Tarun Mahindroo (supra) took
view that the Supreme Court in Mcdermott (supra) had not held that
in a case of the nature before the learned Single Judge, without there
being any proof any actual damage having been caused to
claimant/contractor, in absence or documentary evidence in this
regard, he has to be held entitled to 15% of the contracted amount on
basis of Hudson formula. The nature of work was construction of
bachelor accommodation at Sunder Nagar, District Mandi. Claimant
before said Court did not lead either oral or documentary evidence and
claimed loss of overheads on basis of Hudson formula. In those
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circumstances, the view was taken.
The Indian Contract Act, 1872
Section 34 in The Arbitration And Conciliation Act, 1996 [Entire Act]
Section 37 in The Arbitration And Conciliation Act, 1996 [Entire Act]
M/S Saluja Construction Co. vs The State Of Madhya Pradesh on 18 May, 2010
In Saluja Construction Co.(supra) the Division Bench
expressed view that actual loss of overheads could be proved by
producing accounts and leading other evidence. The contractor can
certainly place materials to show, on what basis the estimate was
made. Evidence may be in the shape of account books and calculation
made in the office before submitting tender.
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