Compensation Must Not Be Whimsical or Result in Unjust Windfall: SC

Batliboi Environmental Engineers Limited Vs Hindustan Petroleum Corporation Limited And Another (Supreme Court of India) Supreme Court, in the case of Batliboi Environmental Engineers Limited Vs Hindustan Petroleum Corporation Limited And Another, emphasized that compensation awarded in contract disputes, particularly through arbitration, must be based on actual loss sustained and should not result in a whimsical or absurd windfall for one party at the expense of the other. The court examined the principles for computing damages when a contract is partially prevented or delayed due to the empl...