Contractor Claiming Loss Of Profits Must Prove That Other Works Were Lost Due To Delay

While deciding on the claim pertaining to loss of profit, the Hon’ble Supreme Court of India has set aside an award on grounds that the same is patently illegal and held that where the execution of a contract is delayed and the Contractor claims loss arising from depletion of income, then the Contractor must prove that there was alternative work available by placing on record invitation to tender, which were rejected by the Contractor due to incapacity to undertake other work. The loss must also be proved by showing drop in turnover in books of accounts.

Batliboi Environmental Engineers Ltd vs Hindustan Petroleum Corporation Ltd & Anr

Supreme Court of India l Decided on 21.09.2023