The Orissa Minerals Development Co. Ltd. v. Jai Balaji Industries Ltd.
Case brief
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Calcutta High Court, F.M.A. Nos. 939 and 941 of 2012 (Sabyasachi Bhattacharyya, J., author; Supratim Bhattacharya, J., concurring), judgment dated 09.12.2025. Section 37 Arbitration and Conciliation Act 1996 appeals by The Orissa Minerals Development Company Limited against Section 34 judgments dated 29.02.2012 (Additional District Judge, Fourth Court, Barasat, Miscellaneous Case No. 173 of 2010) and 27.02.2012 (Additional District Judge, Fifth Court, Barasat, Miscellaneous Case No. 159 of 2010) affirming arbitral awards in favour of Jai Balaji Industries Limited for excess amounts spent purchasing 43,413.70 MT of balance iron ore from third parties and for loss of profits, with simple interest (from 01.10.2004 and 01.01.2005 respectively, and @ 6%/10% per annum on loss-of-profits principal from date of award), after Orissa Minerals stopped supply under the agreements dated 11.03.2004 (7,000 MT per month, 65% Fe 05-18mm) and 13.08.2003 (1,00,000 tonnes +25% per annum, 63% Fe 10-30mm). Issues: prior demand, tender participation and availability pre-conditions; waiver of 100% advance payment; undated cheques; tranche lifting; breach by stoppage of supply; replica-award perversity; loss of profits, guesstimate and mitigation (Section 73 Contract Act); interest under Section 31(7); Section 34(2)(a)(iv) submissions ground; Section 34(2-A) patent illegality inapplicable pre-2015 Amendment; public policy and conscience-shock tests. Precedents: Sikkim Subba Associates v. State of Sikkim (2001) 5 SCC 629 (distinguished – equity principle inapplicable to contractual claim); Motilal Padampat Sugar Mills v. State of U.P. (1979) 2 SCC 409 (referred, cited by appellant on waiver pleading); ONGC Ltd. v. Saw Pipes Ltd. (2003) 5 SCC 705 and Associate Builders v. DDA (2015) 3 SCC 49 (relied on as Section 34 benchmarks); Batliboi Environmental Engineers v. HPCL (2024) 2 SCC 375 (no windfall) and Unibros v. All India Radio 2023 SCC OnLine SC 1366 (mitigation factor) relied on. Outcome: both appeals dismissed on contest; Section 34 judgments and both arbitral awards affirmed; no order as to costs.