In Brief
MMTC Ltd. contracted to purchase 60,000 metric tons of US-origin sulphur annually from H.J. Baker & Bros. In 1992, following de-canalization of sulphur imports by the Indian government, MMTC refused to nominate vessels and lift the remaining quantity. Baker sought damages. An arbitration tribunal awarded USD 510,215 for two periods; a High Court Division Bench partly upheld it (approving damages for January-June 1992, but setting aside damages for July-December 1992). The Supreme Court dismissed both appeals, holding that damages must be calculated as the difference between market price and contract price on the date of breach, and that Baker failed to produce best evidence of market price for the second period, thus losing the right to recover those damages.
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