The Delhi High Court recently ruled that an arbitral tribunal cannot award damages prohibited by the contract. This reinforces the principle that contractual agreements are binding and must be respected in arbitration proceedings.
Key takeaways: – Contractual terms prevail: Parties should carefully draft contracts to outline the damages that can be claimed clearly. – Arbitration boundaries: Arbitrators must operate within the confines of the contract and cannot disregard its express provisions.
This decision provides clarity and certainty for parties entering into contracts, ensuring that their agreed-upon terms will be upheld in future disputes.
Read this article by Abhinav Agnihotri and Prabhav Gang: https://lnkd.in/gq6uFFKj
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