the measure of damages is the estimated loss directly and naturally
resulting, in the ordinary course of events, from the buyers breach of
contract.
This principle is also captured in Sec. 73 of the Indian Contract Act, 1872 which clearly stipulates that
compensation for any loss or damage caused to him thereby, which
naturally arose in the usual course of things from such breach.
1. Wherever we are saying Glencore suffered no loss we should also
qualify it alternatively by saying that damages awarded does not reflect estimated losses , emphasis should be made on the language of sec 50 (2) of UK Act and on Sec 73 of ICA . No loss despite breach sounds bizarre at first instance .
2. Whether the Illustration D Of Sec 73 of ICA ( quoted in para 32 of HC
order) and Sec 50 (3) can be read and given effect independently without first considering it in light of Sec 73 and 50 (2) according to which compensation for damages should correspond with damages arising directly and naturally in usual course . 3. Whether the inquiry qua damages arising directly and naturally usual course of business is totally irrelevant when it comes to awarding damages for loss and courts should be driven by illustrations and prima facie measures only ? consider making it a question of law - (See para 32 of HC order) 4. Can we say that there is no concept of prima facie measure of damages in Indian Law , all damages should qualify test of Sec 73 ( particularly where no liquidated damages are agreed upon) and illustration U/s 73 is to be tested on the touchstone of Sec 73 , such illustrations cannot be applied as an independent provision of law . Para 32 and 33 of the HC order must be assailed independently on these lines 5. Please consider adding an para to the effect that refusal of discovery has resulted into windfall gain /unjust enrichment which are opposed to public policy of India . Even in the context of Sec 74 ( liquidated damages) adequacy /reasonableness of damages in rebuttable by the party in breach ( I think Jindal Saw Pipes deals with this) 6. Para 28 of the HC order should also be assailed separately on the line of suggestions given by us in Synopsis 7. Finding in para 29 of HC order Glencore placed sufficient material to establish market price must be assailed - because whether market price difference correspond with damages arising directly and naturally in usual course to Glencore who is trader has been completely ignored by denying discovery. 8. The case law mentioned in para 30 of HC order needs to be examined can we distinguish this from our facts . It is not clear from quotation that whether it is a ratio or passing remark . To my mind the second leg of quotation starting from So if Contract to accept and pay .. appears to be passing remark while judgement is on a suit by purchaser . In any case what can be true for purchases cannot be true for Seller in all cases particularly where Seller is not producer himself 9. How are we filing documents which handover in High Court after hearing ? 10. Finally if in one para in grounds we can give summary of our other grounds which we took in our objection just for the completion of record and to not close the window of agitating those at all before Supreme Court