Proving Actual Loss Under Section 73: Bombay High Court Clarifies Standards for Business Damage Claims

sketch of the Bombay High Court
Case
WOCKHARDT HOSPITALS LTD. v. DR.NISHITH VYAS (Bombay High Court, 03-09-2026)
Law
Indian Contract Act.

Highlights of the Judgment:

  • Detailed examination of the standard of proof required under Section 73 of the Indian Contract Act, 1872, for unliquidated business losses.
  • Requirement to establish actual financial loss rather than relying merely on abstract calculations or paper loss.
  • Application of the legal duty to mitigate damages and account for substitute personnel or alternate arrangements.
  • Analysis of professional service contracts lacking explicit liquidated damages or penalty clauses.
  • Principles preventing unjust enrichment when evaluating claims for compensation arising from sudden employment termination.