Challenging Liability Caps And Exclusion Clauses In Indian Infrastructure Arbitration: Statutory Protections Versus Contractual Restraints

I. Introduction

1. Exclusion clauses and liability caps are frequently used in infrastructure arbitration to protect government authorities from the consequences of their own breaches. However, the applicability of these clauses raises concerns especially when the contractor incurs damages due to reasons attributable to the Claimant. This article examines how Courts and Arbitral Tribunals have scrutinized such clauses, especially when employer-caused delays harm contractors. By analyzing key judicial decisions, it highlights the tension between contractual autonomy and statutory protections under the Indian Contract Act, advocating for a balanced framework that ensures equitable remedies.