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1. Legal Remedies Under the Indian Contract Act

​Under Section 73 of the Act, when a contract is broken, the party who suffers is entitled to receive compensation for any loss or damage caused to them.

​Compensatory Damages: You can claim for the direct loss caused by the delay (e.g., if you had to procure materials from elsewhere at a higher price).

​Loss of Profits (Special Damages): You can claim for the two lost orders only if the supplier was aware, at the time of contracting, that such losses were a likely result of a breach. This is known as the rule of "remoteness of damage."

​Refund of Advance: If you choose to terminate the contract due to the breach, you are entitled to a full refund of the 60% advance plus interest.

​Specific Performance: If the raw materials are unique and cannot be sourced elsewhere, a court can compel the supplier to deliver them.

​2. Overcoming the "Unavoidable Delay" Defense

​The supplier's claim of "unavoidable delay" usually refers to a Force Majeure clause.

​The Burden of Proof: In Indian law, the party invoking Force Majeure must prove that the event was beyond their control and prevented performance. Mere difficulty or "unavoidability" without documented proof (like a government strike, natural disaster, etc.) is not a valid legal excuse.

​Time is of the Essence: If your contract stated that delivery time was "of the essence," any delay gives you the immediate right to void the contract and seek damages.

​3. Essential Evidence to Collect

​To build a robust case, you should preserve the following:

​The Contract/Purchase Order: Specifically sections detailing delivery timelines, penalty clauses for delays, and "time is of the essence" mentions.

​Proof of Communication: Emails or letters where you notified the supplier of the urgency and the potential loss of specific orders if they failed to deliver.

​Evidence of Lost Orders: Documents showing the cancellation of the two major orders and the projected profit margins from those deals.

​Demand Notice: A formal legal notice sent by an attorney demanding delivery or compensation. This is often a mandatory precursor to litigation in India.

​Recommended Next Steps

​Issue a Legal Notice: Have an attorney draft a formal notice demanding the immediate delivery of goods or a refund of the 60% advance with interest and damages for loss of profit.

​Review the Force Majeure Clause: Check your written agreement to see how "unavoidable delays" are defined.