Contractual Delay Penalties Upheld: Liquidated Damages Valid Under Sections 55, 73, and 74 of Contract Act

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....SC upheld the arbitral tribunal's decision allowing liquidated damages deduction from the appellant's contractual dues. The court determined that the respondent validly imposed damages at 0.5% per week for a delay exceeding ten months, primarily attributable to the appellant. Interpreting Sections 55, 73, and 74 of the Contract Act, the court affirmed that the liquidated damages were legally and contractually valid. The Single Judge's order setting aside the arbitral award was deemed to have exceeded jurisdictional limits under Section 34 of the Arbitration Act. The Division Bench's restoration of the original arbitral award was consequently upheld, and the appeal was dismissed.....