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As per case facts, the Petitioner, Chennai Port Trust, initiated a tender for restoration work, which the Respondent won. The work was significantly delayed. The Petitioner withheld liquidated damages, leading
...the Respondent to seek a refund through arbitration. The Arbitrator found the delay attributable to the Respondent but ordered the refund of liquidated damages, concluding the Petitioner suffered no actual loss and the levy was unreasonable and contrary to contract terms. The Petitioner challenged this award in the High Court. The question arose whether the Arbitrator's decision to order a refund of liquidated damages, despite the delay being attributable to the Respondent, was legally sound. Finally, the High Court upheld the Arbitrator's award, affirming that the Petitioner did not incur any loss and the liquidated damages levy was inconsistent with contract terms and legal precedents, dismissing the Petitioner's challenge.
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