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Supreme Court of India 2019-11-07 dismissed

M/S VIJAY TRADING vs CENTRAL WAREHOUSING CORPORATION

Bench: 3 — R. Banumathi, A.S. Bopanna, Hrishikesh Roy

In Brief

A contractor hired for cargo handling and transport at a customs clearance depot failed to deliver an export container to the port on time, causing it to miss the shipping schedule. The corporation terminated the contract and forfeited the contractor's security deposit. The contractor claimed damages and refund of the deposit, arguing the container was detained by a third party. The Supreme Court upheld the arbitrator's award, holding that the contractor's non-performance justified both contract termination and forfeiture of security and equipment. The corporation had incurred substantial costs, including a bank guarantee, due to the breach. The appeal was dismissed as concurrent findings of lower courts supported the award.

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Arbitration and Conciliation Contract Performance Forfeiture Damages Section 34 Review

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