NUMALIGARH REFINERY LID. versus DAELIM INDUSTRIAL COMPANY LID.

NUMALIGARH REFINERY LID. versus DAELIM INDUSTRIAL COMPANY LID.

Claimant is entitled to compensation for substituted material, liquidity damages for delay, and interest on delayed funds based on contractual clauses and factual assessment, but not to turbo technical price or claims for exchange rate fluctuation or countervailing duty where contract terms expressly prohibit such additional claims.

Parties
Appellant: Numaligarh Refinery Ltd.; Respondent: Daelim Industrial Company Ltd.
Jurisdiction
India
Judgment Date
06 September 2007
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Outcome
Appeal partly allowed, High Court order modified as indicated; DIC's appeal dismissed; appeals disposed of.
Legal Topics
Works Contract, Award Challenge, Damages Assessment, Interest Award
Arbitration Contracts Works Contract Award Challenge Damages Assessment Interest Award

Case Brief

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Parties

Numaligarh Refinery Ltd.

Appellant

Daelim Industrial Company Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Decision

Legal Issues

  1. 1 Entitlement to damages and compensation for delay under works contract
  2. 2 Interpretation of contract clauses for price fluctuation, taxes, and interest
  3. 3 Validity of arbitral award—majority vs minority views

Ratio Decidendi

Claimant is entitled to compensation for substituted material, liquidity damages for delay, and interest on delayed funds based on contractual clauses and factual assessment, but not to turbo technical price or claims for exchange rate fluctuation or countervailing duty where contract terms expressly prohibit such additional claims.

Court Disposition

Appeal partly allowed, High Court order modified as indicated; DIC's appeal dismissed; appeals disposed of.

Orders

  • Claimant-DIC entitled to Rs.2 crores for substituted material, Rs.8.9 crores for liquidity damages, Rs.0.2 crore as interest paid on delayed funds (total Rs.11.1 crores).
  • Interest at 12% pendente lite from date of claim petition till realization.