...-Board considered the application of 1st respondent and granted time for completion of the contract upto 11.10.1995 without imposing any pre-estimated damages. Clause 47 of the tender agreement provides for levy of damages for non-performance of the contract in time...to 31.7.1996 subject to the condition of levying pre-estimated damages. The 1st respondent again sought for 4th extension of time for completing the contract from 1.8.96 to 30.9.96 and only on 30.9.1996, the 1st respondent completed the contract.4. The petitioner invoking Clause 47 of the contract on 12.8.96 deducted a sum of Rs. 92,26,208 in respect...of pre-estimated damages in contract No...

...difficult to be linked with actual losses suffered by the State and in such cases the pre-estimated damages envisaged in the contract have to be paid.7. Now, a sewage...Delhi.2. The question raised for our consideration is when and to what extent can the stipulated liquidated damages for breach of a contract be held to be in the nature of...stipulated. The contract in question only envisaged the upper limit of damages which could be claimed. It is submitted that the agreement quoted in the earlier part of the order clearly shows that what is...

...State and in such cases the pre-estimated damages envisaged in the contract have to be paid. 7. Now, a Sewage Pumping Station is not something from which Revenue would be generated...1. With reference to Section 73 and 74 of the Indian Contract Act, in the absence of there being any proof of the loss suffered, the learned Single Judge has held that neither Ex.PW- 1...Delhi Development Authority (whose decision in writing shall be final) may decide on the amount of estimated cost of the whole work as shown in the tender, for every day that the work remains...

...loss is difficult or impossible to prove that the liquidated amount named in the contract and it is genuine or pre-estimated damages agreed between the parties can be awarded. Therefore, from the above... 6 technical in nature and profit or loss cannot be estimated certainty, only for this reason the parties have entered into pre-estimated damages in the contract itself...subsequent correspondence namely E.mail dated 22.2.204 concluded that it is not the case of the petitioner that pre-estimated damages named in the contract is unreasonable and arrived without any meeting...

...the present case, there was pre-estimated amount mentioned in the contract between the parties. The Arbitrators have recorded a clear finding, which cannot be disturbed by this Court, that the Company has breached the contract. It was not the case of the Company that the pre-estimated damages mentioned...provisions of section 73 of the Contract Act and the party who has suffered loss become entitled to the amount of the pre-estimated damages mentioned in the contract. In...computed in terms of money and (3) in the contract there is a pre-estimate of damages. Once these factors are established, the matter is governed by the...

...payable by the defendant to the plaintiff in case of breach is pre-estimated sum by the parties, Section 74 of the Contract Act would apply and would entitle the plaintiff to reasonable damages not exceeding the amount so named in case...as this is not a case in which there was a deposit made for the performance of the contract; but pre-estimated damages were provided to be paid by the defendant to the plaintiff in case the defendant committed breach of the contract and...made for due performance of a contract.The principle embodied in S. 74 is that where a penalty or liquidated damages is fixed under a contract to be paid in case of its breach the...

...parties stipulated for pre-estimated damages (liquidated damages). The contract concerned contained provisions for liquidated damages for breach of contract, particularly breach of deadlines set in the....40. This brings us to the waiver. It may be noted that ONGC waived liquidated damages twice before giving extension with pre-estimated damages. The approach of the Arbitral Tribunal was to hold that once liquidated damages were waived in the first extension, subsequent extension could not be coupled with liquidated damages unless a clear intention flowed from the contract; while...aspect of liquidated damages, the Arbitral Tribunal held that liquidated damages, which are pre-estimated damages, cannot be granted as there was no breach of contract due to the fact that time was not...

...-supply of power to the consumers in time, which is public utility service. The NVVN was pressing for compensation named in Clause 4.6 of the Contract; it is genuine pre-estimated damages and it is...involving public utility service in the absence of proof of any loss suffered by the party complaining the breach, the Court has to grant pre-estimated sum stipulated in the contract as damages in full...the opinion that the Court has to assume the amount stipulated as pre-estimated damages in the contract, as the amount contemplated by the parties at the time of contract as correct without any need...

...difficult to estimate the loss and parties have pre-estimated damages out of their understanding, such amount agreed certainly has to be awarded towards compensation. This Court taking note of the fact that the contract is solely technical in nature...and profit or loss cannot be estimated with certainty only on that reason the parties have entered into pre-estimated damages in the contract .4...take over test. As a dispute is only with regard to the levy of liquidated damages for delay in TOT, it is relevant to extract the contract dealing with the contract specifying the parties.Time...

...provided in the contract shows that time was of essence in the contract and the liquidated damages recoverable were pre-estimated and prescribed in the contract itself. 42... • extension for completing the contract along with a claim for damages. In the latter circumstance, the claim for damages is one which would...in achieving any milestone as stipulated in Exhibit-J of the contract, for each day of delay, the Contractor had to pay liquidated damages merely on a demand by the Company. If there was any failure to...

...was determined by the parties based on the monthly rent fixed and the pre-estimated liquidated damages was accordingly fixed in the contract and was accepted by both sides. Therefore, unless the pre...the judgment broadly classified cases where loss can be proved and cases where loss cannot be proved. In the later cases, if the Court finds the pre-estimated compensation to be reasonable, the same...can be awarded. However, in the former cases, even if the parties have agreed pre-estimated 4...

...contract and such a compensation can be determined even at the time of entering into the contract being the pre-estimated damages. They cannot, however, be penal in nature. Thus, what is dispensed with...226 of the Constitution of India aggrieved by the action of the respondents in seeking to deduct what the respondents claim as liquidated damages from the amount due to the petitioner under...petitioner and liquidated damages are due and payable.The aforesaid issue is really not res-integra in view of various judicial pronouncements. Learned counsel has drawn our attention to a...

...contended that the pre-estimated liquidated damages of Rs 32,79,828 in Arbitration Case No. 297-A of 2002 and Rs 42,08,940 in Arbitration Case No. 297 of 2002 claimed by the respondent ONGC in terms of Clause 2 of the contract between...) Whether the levy of pre-estimated liquidated damages and reasonable compensation by the Superintending Engineer in terms of Clause 2 of the contract between the parties is “arbitrable...4. Losses and damages incurred by the petitioner in the shape of overheads due to prolongation of contract Rs 21,60,375 Claim rejected by the learned arbitrator 5. Loss...

...document and the same was agreed upon between the parties. He further submits that the liquidated damages being the pre-estimated amount agreed between the parties and provided in the contract document requires no proof of damages and...agreed upon between the parties. Thus, prima facie it appears that the liquidated damages being the pre-estimated amount agreed between the parties and provided in the contract document require no proof of damages and...and the same being pre- estimated genuine liquidated damages and is not by way of penalty, so there is no justifiable reason for the respondents to prove loss on account of the delay in completion of...

...where contract itself has pre-estimated liquidated damages which would be incurred by the department in the case of breach, there is no necessity on the part of department to prove actual losses...of road or bridges within stipulated time would be difficult to be linked with actual losses suffered by the State and in such cases the pre-estimated damages envisaged in the contract have to be paid...absence of proof of any loss suffered by the party complaining the breach, the Court has to grant pre-estimated sum stipulated in the contract as damages in full or the Court has any other alternative...

...award is against the imposition of unliquidated damages, when the matter of fact stood that the contract between parties stipulated for pre-estimated damages (liquidated damages). The concerned contract contained provisions for liquidated damages for breach of contract, particularly breach of deadlines set in the...damages twice before giving extension with pre-estimated damages. The approach of the Arbitral Tribunal was to hold that once liquidated damages were waived in the first extension, subsequent extension could not be coupled with liquidated damages unless a clear intention flowed from the contract; while...liquidated damages, the Arbitral Tribunal held that liquidated damages, which are pre-estimated damages, cannot be granted as there was no breach of contract due to the fact that time was not the essence...

...but also held that in a case where damages are pre-estimated in accordance with the terms and conditions of the contract for which both the parties had agreed, such damage claimed as liquidated damages in...the order is produced hereunder:-In the present case, the damage was pre-estimated. Both the parties have agreed for the same. It was not in the form of penalty. Therefore, the petitioner could not get refund of the legal damages imposed by the respondent as the same were in accordance with the terms and conditions of the contract between....Therefore, when parties have expressly agreed that recovery from the contractor for breach of the contract is pre-estimated genuine liquidated damages and is not by way of penalty duly agreed by the...

...crystallised legal position, sum ascertained as liquidated damages in the contract is not in the nature of penalty, but is a pre-estimate of loss estimated by the parties likely to be suffered by a...no loss is suffered. It is the quantification of loss that would require no further ascertainment by court/tribunal, which would quantify the same as per the pre-estimated loss or formula agreed to by the parties as 2 2 02 0 SCC OnLine Del 103 3 2010 SCC OnLine Del 3 842 4 2013 SCC OnLine Del 4 288 10 liquidated damages in the contract. In...party in the event of breach of contract by the other party. Loss must be incurred by a party in order to claim the same. Liquidated damages are not payable merely as a penalty for breach of contract, if...

...respondent contended that the pre-estimated liquidated damages of Rs. 32,79,828/- in Arbitration Case No. 297A of 2002 and Rs. 42,08,940/- in Arbitration Case No. 297 of 2002 claimed by the respondent-ONGC in terms of Clause 2 of the contract between...-estimated liquidated damages and reasonable compensation by the Superintending Engineer in terms of Clause 2 of the contract between the parties is “arbitrable”?(ii) Whether the...the Petitioner as per provisions of the contract Rs. 27,92,189/- Rs. 27,92,189/- 4. Losses and damages incurred by the Petitioner in the shape of overheads due...

...agreement itself contemplated a pre-estimated sum as liquidated damages for the delay in completion of the work. That apart, the petitioner denied the various claims made by the respondent/claimant. (v) The learned Arbitrator, after considering the pleadings on either side, framed the following issues: "1. Whether the extension of the contract period..., I have held that in a case covered by Section 74 of the Indian Contract Act and the parties have agreed to a pre-estimated sum named in the contract towards the liquidated damages and also...it was not a genuine pre- estimate of damages. Therefore, the learned Arbitrator came to the conclusion that the action of the petitioner in deducting the liquidated damages was in violation of the...