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Natarajan Srinivasan   05 September 2022

Arbitration- Claim of compensation

If the terms of a contract prohibits the contractor from claiming any compensation on account of extension of the currency of the contract, can the contractor claim compensation, loss of profit, overhead charges, idling losses etc., on account of extension of the currency of the contract during arbitration? Formulae such as Emden Formula are used by the contractor for claiming such compensation. Whether such claims are allowed? Please cite relevant court judgments in this regard. Thank You


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 4 Replies

Dr J C Vashista (Advocate)     06 September 2022

Terms of contract shall prevail.

Even if the contractor claims, it will not be maintainable.

1 Like

Advocate Bhartesh goyal (advocate)     06 September 2022

Yes,Arbitration agreement can only be enforced as per terms and conditions of agreement and beyond the terms and conditions no scope.

1 Like

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     06 September 2022

Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties.

Natarajan Srinivasan   06 September 2022

Thank You Sir. Could you please cite any judgment of Hon'ble Courts in this regard?


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