Municipal Corp.Of Greater Mumbai vs Bharat Construction & Ors

The Supreme Court held that the Municipal Corporation of Greater Mumbai's appeal against the arbitration award was valid as the earlier decision in Municipal Corporation of Gr. Bombay v. Atul Raj Builders Pvt. Ltd. was misapplied. The Court clarified that Clause 94 of the general conditions of the contract does not bar the Arbitrator from awarding compensation for loss of profit in cases of contract foreclosure. The Court set aside the lower court's ruling and allowed the appeal, reinstating the Arbitrator's award in favor of the contractor.