Case Analysis: Batliboi Environmental Engineers Limited v. Hindustan Petroleum Corporation Limited

As a general rule, a party claiming damages for loss of profit is required to establish breach. As long as the breach is established by the Contactor, no further evidence as to proof of actual loss is required. The Hon'ble Supreme Court has in the cases of A.T. Brij Paul Singh v. State of Gujarat, (1984) 4 SCC 59 and Dwaraka Das v. State of M.P., (1999) 3 SCC 500, laid down the law w.r.t to Loss of Profit, wherein it considered granting damages for loss of profit justified and has held that reasonable expectation of profit is implicit in a works contract and its loss has to be compensated by way of damages if the other party to the contract is guilty of breach of contract.

The claim for Loss of Profit has been duly upheld in subsequent cases by the Hon'ble High Court, and the High Courts have refused to interfere with the Loss of Profit awarded by Arbitral Tribunal's in cases of National Highways Authority of India v. BEL-ACC(JV), 2012 SCC OnLine Del 5350 and Nation