Contract Clause Favouring Employer Over Contractor In Claiming Damages Are Deemed Knowingly Included If Not Challenged Before Tribunal: Delhi HC

The Delhi High Court has ruled that clauses in a contract favoring an employer over a contractor in claiming damages are deemed knowingly included if not questioned before an arbitral tribunal. This decision emphasizes the principle of "estoppel" or waiver in contractual disputes. If a contractor signs a contract with potentially onerous clauses but does not challenge them during the arbitration proceedings, they cannot later claim ignorance or unfairness. This ruling promotes diligence in contract negotiation and dispute resolution, encouraging parties to raise all objections at the appropriate forum and time.