The facts of the case are that, ONGC was floated by a global tender for the purchase of an aggregate quantity of seamless steel casing pipes of 3,93,297metres. Here, Welspun Specialty Solution formerly known as the Remi Metals Gujarat Ltd. The Welspun Specialty claims that it bid to supply as a supplier on behalf of a Russian company Volski Mills, Russia. The case throws light on the failure and termination clause/ liquidated damages. The purchaser primarily emphasis on the performance of the contract through the essence of time for purchase of the Purchase Orders. The arbitral tribunal held that a mere clause in the contract for making time as the essence for the performance of the contract does not make any substantial difference. It was noted that the contract containing the provision for extension on the payment of the penalty on default would dilute the obligation of the performance making the contract ineffective. A wholesome view of the contract would be more definitive delegation of the obligations of the contractor. On the similar lines it was also held by the Arbitral tribunal that there is no breach of contract as far as the essence of time is concerned. The ONGC presented four categories of losses that were incurred. The types of tangible losses as follows, namely: (i) revenue loss; (ii) loss due to the use of higher PPF/grade casing; (iii) loss due to intra/inter-regional transportation; and (iv) loss due to foreign exchange fluctuation. The liquidated damages were waived off expressly by ONGC because of which it cannot claim damages incurred during the extended period. The ONGC was held entitled to the amount of rupees 2,09,28,995 as the retention.  The ONGC was not satisfied with the awarding of the arbitral award to Remi Metals, so filed a suit in the District Court under section 34 of the Arbitration and Conciliation Act, 1996 who also mentioned that time is not the essence of the contract and only the incurred losses could be granted. The arbitration cost was reduced from 25 lakhs rupees to 9,40,000 rupees.  Aggrieved by the District Judge’s order, both the parties filed a suit before the Nainital High Court under section 37 of the Arbitration and Conciliation Act, 1996. The Nainital High Court held that both District Judge as well as the Arbitral Tribunal has committed a gross error in the ONGC to prove its losses before recovering any damages. The petition filed by ONGC was allowed, whereas the petition filed by Welspun Specialty was dismissed. The counsel for Welspun Specialty submitted before the Hon’ble Nainital High Court that the arbitral award was reasonable and just