Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Actual Loss Must be Proven for Automatic Recovery of Full Amount : Delhi HC
The Delhi High Court ruled that full recovery claims for liquidated damages require proof of actual loss, preventing automatic compensation without evidence. This decision impacts commercial disputes where damages are claimed without proper substantiation, emphasizing that a liquidated damages clause in a contract only sets the maximum limit of compensation, and actual loss must still be demonstrated to claim the amount.