Loss of Profit- Evidence Vs. Guesswork for Damages
Judgment dated 20.4.2026 of the High Court of Delhi in O.M.P. (COMM) 416/223 of Indian Sugar Exim Corporation Limited Vs. Sakuma Exports Limited with connected
The petitioner is engaged in the export of sugar. As per the Morna contract, the petitioner had to supply 8419 MT of sugar before 21.5.2019.
On 13.5.2019, the respondent had contract for export of 8600 MT sugar to UAE before 30.6.2019.
Due to the failure of the petitioner to supply sugar, the export contract could not be performed and the foreign buyer claimed damages. The debit note of foreign buyer given to the respondent / claimant was passed on to the petitioner for Rs.3,61,20,000/-.
The respondent / claimant sought loss of difference between the purchase and export price.
In the Arbitral Award the respondent was granted damages of Rs.1.40 crores for loss of profit and Rs.2 crores for the claim of foreign buyer.
The present is not a case where the expenses could not have been proved, more so when the respondent was engaged in export business and was exporting sugar in pursuance of other contracts. No books of accounts were produced to prove the percentage of expenses incurred for exporting sugar. There cannot be a quarrel with the proposition that for quantification of damages certain degree of guesswork is involved but it cannot be stretched to the extent that in the absence of evidence damages can be assessed solely on conjecture.
