#Arbitral Awards

Calcutta High Court rules that a Minimum Guaranteed Offtake (MGO) clause in a gas supply contract is enforceable without requiring proof of actual loss, reinforcing contractual liability for infrastructure cost recovery. The decision underscores that profitability concerns do not override agreed contractual obligations under the Arbitration and Conciliation Act.

Madras HC ruled that an acknowledgment of liability recorded in meeting minutes-even if addressed to a third party-qualifies as a valid acknowledgment under Section 18 of the Limitation Act, extending the limitation period. The Court restored an arbitral award of Rs. 1.21 crore, rejecting claims of patent illegality and emphasizing that written acknowledgment need not be directed to the creditor to be effective.