In Brief
M/s Unibros contracted with All India Radio to construct Delhi Doordarshan Bhawan but faced a 42.5-month delay, causing the work to extend from 12 months to 54.5 months. Unibros claimed Rs 1.44 crore in lost profit. An arbitrator awarded this using Hudson's formula, but courts set aside the award twice, finding no credible evidence that Unibros had viable alternative projects to undertake. The Supreme Court dismissed Unibros's appeal, holding that loss-of-profit claims require independent, contemporaneous evidence—such as specific alternative projects, declined tenders, or financial records—not merely mathematical formulas applied without factual foundation.
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