The most recent judgment of the Hon'ble Supreme Court, in
the matter of Welspun Specialty Solutions Limited Vs. ONGC;
reported as 2021 SCCOnline SC 1053 may stimulate rethinking in the
manner of operation of liquidated damages clauses found in several
contracts. In this case, the apex court finally upheld an award
passed by a ld. sole arbitrator holding that ONGC was not entitled
to recover liquidated damages having waived imposition of LD while
granting first two extensions.
- Factual Matrix
The facts leading to passing of this judgment, as available in
the judgement, are worth noticing. ONGC floated tender for purchase
of aggregate quantity of 3,93,297 metres of seamless steel casing
pipes. On completion of tender process, four purchase orders for
varying quantities aggregating to 3,93,297 were issued in favour of
Welspun Speciality Solution Limited. In terms of the purchase
orders, delivery was to commence within 16 weeks and was to be
completed in 40 weeks,
