Disputes on delayed delivery and consequential losses in commercial contracts
Commercial disputes in India encompass the full spectrum of contractual and transactional disagreements between business entities — breach of contract, liquidated damages, force majeure invocation, price escalation, delivery default, quality defect, termination disputes, indemnity claims, assignment and novation, and unjust enrichment. The Indian Contract Act 1872, the Sale of Goods Act 1930, the Specific Relief Act 1963, and the Commercial Courts Act 2015 form the principal statutory framework. AMLEGALS advises commercial enterprises across industries on dispute resolution strategy, from negotiation and mediation through Commercial Court litigation and domestic arbitration.
Resolution of commercial disputes demands both legal precision and commercial pragmatism. The choice between litigation, arbitration and mediation depends on the contract terms, the quantum involved, the relationship between the parties, cross-border enforcement needs, and the urgency of interim relief. Section 9 of the Arbitration and Conciliation Act 1996 permits court-ordered interim measures even where an arbitration agreement exists. The Specific Relief Act 1963 (as amended in 2018) makes specific performance the default remedy where compensation is inadequate. AMLEGALS structures dispute-resolution strategies that balance legal rights with commercial outcomes.
Assessing the merits, quantum and risks of the dispute and recommending the optimal resolution pathway — negotiation, mediation, arbitration or litigation.
Conducting structured negotiations with counterparties to achieve commercially viable settlements without formal proceedings.
Filing and defending suits in Commercial Courts and High Court Commercial Divisions with interim relief applications.
Initiating and defending arbitration proceedings under ad hoc and institutional rules including SIAC, ICC, LCIA and domestic arbitration.
Marshalling documentary evidence, engaging experts, and preparing witness statements for trial and arbitration.
Executing awards and decrees through attachment, garnishee orders and cross-border enforcement under the New York Convention.
Under the Commercial Courts Act 2015, a commercial dispute includes disputes arising out of mercantile documents, export-import transactions, construction, insurance, joint ventures, shareholder agreements, franchises, IP exploitation, partnership, technology transfer, management and consultancy, and any agreement relating to immovable property used exclusively in trade or commerce.
Force majeure is a contractual clause that excuses performance when an event beyond the reasonable control of the parties makes performance impossible or impracticable. Indian law does not recognise a general doctrine of force majeure; it must be expressly provided in the contract. In the absence of a force majeure clause, Section 56 of the Indian Contract Act (frustration) may apply.
Under Section 74 of the Indian Contract Act, when a contract provides for liquidated damages, the party complaining of breach is entitled to receive reasonable compensation not exceeding the amount named. The court assesses whether the amount is a genuine pre-estimate of loss or a penalty.
Yes. The Specific Relief Act 1963 (as amended in 2018) makes specific performance the default remedy for breach of contract where the court determines that compensation is not an adequate remedy. The court now has discretion to grant specific performance as a general rule.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
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