Arbitral Tribunal's Decision To Award Damages For Loss Of Profit Is Patently Illegal If It Contradicts Contract: Delhi High Court

The Delhi High Court ruled that an arbitral tribunal's decision to award damages for loss of profit is patently illegal if it contradicts the terms of the contract. The court emphasized that arbitral awards must align with the contractual agreements between parties and cannot grant damages beyond what is stipulated. This ruling aims to maintain the sanctity of contracts and ensure that arbitration awards are grounded in the agreed-upon terms, providing a clear boundary for arbitral decisions.