Medha Bhattacharyya (Advocate) 28 August 2022

Arbitration claim can be more then demand notice

A contractor raised his demand through legal notice of a particular amount, whether during claim petition he can increase the demand amount by added extra head of claim e.g .idle labour, interest for the entire period of disputes to realization of amount?

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Quick Summary

A contractor initially issued a legal notice for a specific amount. The discussion clarifies that it is permissible to increase the claim amount in an arbitration petition, even beyond what was stated in the initial demand notice. This can include additional heads of claim such as idle labour or interest. The claim amount can be amended in arbitration or civil suits even after filing. Crucially, the ability to prove the increased claim with oral and documentary evidence is paramount.

2 Replies

LCI Thought Leader Adv. Ravish Bhatt, ADIT, CIOT (Dual Qualified lawyer/ Solicitor International Tax Affiliate CIOT) 15 September 2022

Yes the claim amount in arbitration petition could be different and more than what might have been demanded in the notice. In fact claim amount could be changed in civil suit or arbitration even after filing of an arbitration petition or a suit through amendment.

More important is to prove the amount with necessary oral and documentary evidence where you can find several ways to defend.

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Medha Bhattacharyya (Advocate) 31 October 2022

Are there any case law in this matter?Please refer.