Common use of Compensation for short delivery Clause in Contracts

Compensation for short delivery. lifting 5.5.1 If for a Year, the Seller fails to meet the Level of Delivery, or the Purchaser fails to meet the Level of Lifting with respect to that Year, then the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: Below 100% but up to 75% of ACQ Nil Below 75% of ACQ 10% The compensation shall be computed in the same manner as done slab-wise for computation of income-tax. The Level of Delivery and Level of Lifting shall be with reference to the ACQ under this E-FSA. 5.5.2 Compensation for the Failed Quantity shall be payable by the defaulting Party to the other Party within a period of 90 (ninety) days from the date of receipt of a claim in this regard from the non-defaulting Party. In the event of non-payment within the due date, the defaulting Party shall be liable to pay interest as mentioned in Clause 13. In the event that the compensation along with interest payable thereon is not paid within a period of 180 (one hundred and eighty) days of receipt of the claim as aforesaid, the Seller shall have the right to invoke the Performance Security.

Compensation for short delivery. lifting 5.5.1 4.6.1 If for a Year, the Seller fails to meet the Level of DeliveryDelivery by the Seller, or the Purchaser fails to meet the Level of Lifting by the Purchaser falls below 100% with respect to that Year, then the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be be, (“Failed Quantity”) in terms of the followingfollowing : Below 1 Less than 100% but up to 75upto 60% of ACQ Nil Below 75% of ACQ 10% NIL (i) The compensation shall be computed in the same manner as done slab-wise for computation of income-tax. The Level of Delivery and Level of Lifting shall be with reference to the ACQ under this E-FSA. 5.5.2 Compensation for the Failed Quantity payable shall be the aggregate of the compensation worked out separately with respect to each of the two levels provided in the table above, to be computed as per the income tax system. (ii) The Level of Delivery/ Level of Lifting that would cause compensation for the Failed Quantity payable by the defaulting Party, as mentioned in the table above, may be reviewed by the Seller in light of its Coal availability and Coal commitments, and amended accordingly on year-to-year basis at the sole discretion of the Seller during the term of the Agreement. 4.6.2 Compensation for short supply/lifting shall be payable by the defaulting Party to the other Party within a period of 90 (ninety) days from the date of receipt of a claim in this regard from the non-defaulting Partyclaim. In the event of non-payment within the due date, the defaulting Party shall be liable to pay interest as mentioned in the Clause 13. In the event that the compensation along with interest payable thereon is not paid within a period of 180 (one hundred and eighty) days of receipt of the claim as aforesaid, the Seller shall have the right to invoke the Performance Security.

Compensation for short delivery. lifting 5.5.1 4.5.1 If for a Year, the Seller fails to meet the Level of DeliveryDelivery by the Seller, or the Purchaser fails to meet the Level of Lifting by the Purchaser falls below 100% with respect to that Year, then the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be be, (“Failed Quantity”) in terms of the following: Below 1 Less than 100% but up to 75upto 60% of ACQ Nil Below 75% of ACQ 10% NIL (i) The compensation shall be computed in the same manner as done slab-wise for computation of income-tax. The Level of Delivery and Level of Lifting shall be with reference to the ACQ under this E-FSA. 5.5.2 Compensation for the Failed Quantity payable shall be the aggregate of the compensation worked out separately with respect to each of the two levels provided in the table above, to be computed as per the income tax system. (ii) The Level of Delivery/ Level of Lifting that would cause compensation for the Failed Quantity payable by the defaulting Party, as mentioned in the table above, may be reviewed by the Seller in light of its Coal availability and Coal commitments, and amended accordingly on year-to-year basis at the sole discretion of the Seller during the term of the Agreement. 4.5.2 Compensation for short supply/lifting shall be payable by the defaulting Party to the other Party within a period of 90 (ninety) days from the date of receipt of a claim in this regard from the non-defaulting Partyclaim. In the event of non-payment within the due date, the defaulting Party shall be liable to pay interest as mentioned in the Clause 13. In the event that the compensation along with interest payable thereon is not paid within a period of 180 (one hundred and eighty) days of receipt of the claim as aforesaid, the Seller shall have the right to invoke the Performance Security.

Compensation for short delivery. lifting 5.5.1 If for a Year, the Seller fails to meet the Level of Delivery, or the Purchaser fails to meet the Level of Lifting with respect to that Year, then the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: Level of Delivery/ Level of Lifting in a Year Rate of Compensation applicable for the Failed Quantity (at the price payable under Clause 11 for Contracted Grade of Coal supplied) Below 100% but up to 75% of ACQ Nil Below 75% of ACQ 10% The compensation shall be computed in the same manner as done slab-wise for computation of income-tax. The Level of Delivery and Level of Lifting shall be with reference to the ACQ under this E-FSA. 5.5.2 Compensation for the Failed Quantity shall be payable by the defaulting Party to the other Party within a period of 90 (ninety) days from the date of receipt of a claim in this regard from the non-defaulting Party. In the event of non-payment within the due date, the defaulting Party shall be liable to pay interest as mentioned in Clause 13. In the event that the compensation along with interest payable thereon is not paid within a period of 180 (one hundred and eighty) days of receipt of the claim as aforesaid, the Seller shall have the right to invoke the Performance Security.