LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Digvijay Singh Malik   14 August 2015

Arbitration matter imp.

A awarded a contract to B to take parcels in his trains from X to Y for a period of three years. After completion of the said contract period B asked for a extension for two years. Hence, extension for two years was granted by A to B. During the period of extension of two years B was found indulged in the practice of overloading. A terminated the contract of B. A After conducting an enquiry of the same it was found that overloading was not done by B. A took 50 days to found out that the overloading is not done by B and there was a wrongfull terminaiton of contract.

Now  B is seeking a claim of Rs. 1,000,00/- from A as a loss of profit which he has to earn from the parcel services if his contract was not terminated. 

Can this be defended in arbitration & his claim can be set a side or A has to provide the compensation. 



Learning

 1 Replies

P.Bashista (Advocate)     31 August 2015

It is an issue of argument before the arbitrator and it depends that what are the documentary evidences placed on record by B for claiming such loss against A. Though prima facie B has a strong case.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register