• COURTDelhi High Court
• TITLE/CORAM HARYANA VIDYUT PRASARAN NIGAM LTD. v. M/S COBRA INSTALACIONES Y. SERVICES AND ORS HMJ Bakhru
  O.M.P (COMM) 8 of 2021

The Arbitral Tribunal Cannot Reduce The Liquidated Damages On 'Guess Work' held that once the arbitrator finds that the employer has suffered substantial losses due to the fault of the contractor and the contract provides for liquidated damages which were genuine pre-estimate of the loss as the quantification of the claim is not possible, then the arbitrator cannot reduce the amount of the damages on guesswork. entered into an agreement for executing the work related to "procurement of plant, design, supply and installation of Package G-09". The agreement provided imposition of liquidated damages for delay in execution of the work.Cobra's request for the release of deducted money was declined by HPVNL. Accordingly, the dispute was referred to a sole arbitrator.