Jammu & Kashmir Economic Reconstruction Agency Vs Simplex Projects Limited (Delhi High Court)
Delhi High Court held that the Liquidated Damages clause does not entitle a party to claim the whole Liquidated Damages sum automatically upon the occurrence of breach. Liquidated Damages can be claimed subject to proving the actual loss suffered.
Facts- The present petition is instituted under Section 34 of the Arbitration & Conciliation Act, 1996 thereby seeking part setting aside of the arbitral award dated 13.07.2024 delivered by the Arbitral Tribunal.
The impugned award came to be delivered in the context of Contract Agreement No. JKUSDIP Srinagar/UT/02 dated 02.04.2013 which came to be executed between the parties in consequence of Letter of Acceptance dated 06.03.2018 issued by the petitioner in pursuance of the respondent/claimant submitting its bid on 04.12.2012 against the petitioner’s tender dated 15.10.2012 inviting bids for ‘Construction of Multi-Storied Mechanized Parking Facility on MA near Lal Chowk, Srinagar’.
Pertinently, the scope of work under the subject contract also included the Operation & Maintenance (O&M) of the multi-level car parking for a period of three years from the date of the Defect Liability Period ending. It is the case of the petitioner that the stipulated dates of commencement and completion of the subject project were 06.05.2013 and 05.11.2014, respectively, and that the initial period of completion of the subject project was 549 days. On the contrary, it is the respondent/claimant’s case that the stipulated date for completion of the said project as per the subject contract was 24.02.2015. Indisputably, the construction work was completed on 30.04.2017, after eight Extensions of Time granted to the Petitioner.
