https://www.taxtmi.com/caselaws?id=463726 A liquidated damages clause does not dispense with the need to prove legal injury or loss where loss is capable of proof; under Sections 73 and 74 of the Contract Act, compensation remains limited to reasonable compensation, and proof is not excused merely because breach is established. The arbitral award was set aside because the arbitrator recorded no documentary proof of damage, yet granted liquidated damages on the contract clause alone without a finding that loss was impossible to prove. An award based on no evidence or disregard of vital evidence was held perverse and vulnerable to challenge as patent illegality under Section 34. en-us Mon, 18 Dec 2023 00:00:00 +0530 Thu, 11 Sep 2025 11:14:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463726 A liquidated damages clause does not dispense with the need to prove legal injury or loss where loss is capable of proof; under Sections 73 and 74 of the Contract Act, compensation remains limited to reasonable compensation, and proof is not excused merely because breach is established. The arbitral award was set aside because the arbitrator recorded no documentary proof of damage, yet granted liquidated damages on the contract clause alone without a finding that loss was impossible to prove. An award based on no evidence or disregard of vital evidence was held perverse and vulnerable to challenge as patent illegality under Section 34. Case-Laws Indian Laws Mon, 18 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463726