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.
