Arbitration
Digvijay Singh Malik
(Querist) 14 August 2015
This query is : Resolved
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 termination 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.
Isaac Gabriel
(Expert) 15 August 2015
It depends upon the terms of the contract and the arbitration agreements.
SAINATH DEVALLA
(Expert) 16 August 2015
U said A came to know that B was indulging in over loading and after inquiry it was found that B had not done so.
Without proper investigation how did A terminate the contract.B is right in claiming damages.
pawan sharma
(Expert) 16 August 2015
If there is clause of Arbitration, then only it gone to Arbitration other vise the matter come before the civil Court. Other hand the termination was wrong for the B can take damages as loss bear by him due to such termination of contract.
