#loss of profits

The Karnataka High Court ruled that arbitral tribunals cannot award loss of profits without concrete evidence, even if contract foreclosure was unlawful. The decision underscores that findings of fact in arbitration are binding unless perverse, rejecting a Rs. 4.38 crore claim for lack of proof. Contractors and businesses must now ensure robust documentation to sustain damages claims in arbitration.

The Bombay High Court upheld an arbitral award of Rs. 1.49 crore for lost profits despite contract expiry, ruling that continued performance by the contractor constituted an implied extension of obligations. This clarifies that mere expiration of a written agreement does not extinguish claims for consequential losses when work proceeds with mutual acquiescence, significantly impacting commercial arbitration strategy in infrastructure and construction disputes.