MAHARASHTRA STATE ELECTRICITY BOARD vs STERILITE INDUSTRIES (INDIA)

The Supreme Court upheld the decision of the Arbitral Tribunal which found that the Maharashtra State Electricity Board was entitled to damages due to the breach of contract by Sterilite Industries. The Tribunal determined that the respondents were liable for the additional costs incurred by the petitioners in procuring similar goods from other suppliers, as per Clause 14 of the contract. The Court clarified that the computation of damages under Section 73 of the Indian Contract Act was not applicable due to the specific provisions of the contract, thus affirming the Tribunal's award of damages amounting to Rs. 88,91,143.16p.