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Supreme Court of India 2017-06-19 dismissed

Kanchan Udyog Limited vs United Spirits Limited

Bench: 2 — Navin Sinha

In Brief

A beverages bottler sued for damages after its agreement with a concentrate supplier was terminated. The bottler claimed Rs. 4.24 crores for lost anticipated profits and plant establishment costs. The trial court allowed the claim; the appellate court reversed it. The Supreme Court upheld the reversal, holding that the breach was not the primary cause of the bottler's losses. Instead, multiple factors—brand non-acceptance, the bottler's poor finances, inadequate manpower deployment, and lack of business acumen—caused the failure. The court rejected using loan application profit projections as a basis for damages and found the bottler failed to mitigate losses by not continuing to source from an alternate supplier or timely selling the plant."

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Contract Law Damages Termination of Agreement Loss of Anticipated Profits Reliance Loss Mitigation of Damages Novation Waiver and Acquiescence

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