https://www.taxtmi.com/caselaws?id=786030 In a public utility project delayed at the commissioning stage, reasonable compensation by way of liquidated damages may be awarded under Section 74 of the Indian Contract Act, 1872 without strict proof of exact actual loss, especially where the stipulation addresses delay affecting public interest and environmental objectives. The defaulting party must show that no loss was caused or that the clause is penal. Under Section 37 of the Arbitration and Conciliation Act, 1996, an appellate court cannot rework or reduce a plausible compensation determination already made within the contractual framework under Section 34 unless it is shown to be arbitrary, perverse, or outside that framework. en-us Fri, 30 Jan 2026 00:00:00 +0530 Thu, 05 Feb 2026 09:16:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786030 In a public utility project delayed at the commissioning stage, reasonable compensation by way of liquidated damages may be awarded under Section 74 of the Indian Contract Act, 1872 without strict proof of exact actual loss, especially where the stipulation addresses delay affecting public interest and environmental objectives. The defaulting party must show that no loss was caused or that the clause is penal. Under Section 37 of the Arbitration and Conciliation Act, 1996, an appellate court cannot rework or reduce a plausible compensation determination already made within the contractual framework under Section 34 unless it is shown to be arbitrary, perverse, or outside that framework. Case-Laws Indian Laws Fri, 30 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786030