Maharashtra State Electricity Board vs Sterilite Industries (India) & Anr

The Supreme Court ruled that in disputes arising from breach of contract, the measure of damages is determined by the specific terms of the contract, as per Clause 14, rather than the general provisions of Section 73 of the Indian Contract Act. The Court held that the arbitrators correctly found that the respondents breached the contract and were liable for the additional costs incurred by the petitioners in procuring similar goods from other suppliers. The claim for liquidated damages was not applicable in this case, leading to the dismissal of the appeal by the respondents.