If clause for damages present, Party entitled to reasonable compensation whether or not actual loss occurred
High Court of Delhi Mahanagar Telephone Nigam Limited v. Haryana Telecom Limited MANU/DE/1072/2017 21.04.2017 Arbitration Party complaining breach of contract is entitled to reasonable compensation whether or not actual loss is proved to have been caused Mahanagar Telephone Nigam Limited ('MTNL') has filed present petition under Section 34 of Arbitration & Conciliation Act, 1996 challenging an Award dated 12th March, 2003 passed by Arbitral Tribunal ('AT') in disputes between MTNL and Respondent, Haryana Telecom Limited ('HTL'). AT held that, since MTNL failed to prove actual loss or damage on account of delayed delivery of goods and since, mere delay in supplies was unlikely to cause damages, question of even fixing a reasonable compensation under Section 74 of Indian Contract Act, 1872 ('ICA') did not arise. Consequently, MTNL was asked to refund HTL sum of Rs. 1,03,20,763 together with interest @ 12% from the date of Award till the dat...