Indemnity
38. If, by reason or in consequence of the construction, maintenance or failure of any of the authorised works, including any works carried out by the promoter pursuant to paragraph 14 or protective works required by a condition imposed under paragraph 23(a) or required under paragraph 25(b), or any subsidence resulting from any of those works, any damage is caused to any apparatus (other than apparatus the repair of which is not reasonably necessary in view of its intended removal for the purposes of those works) or other property of the specified undertaker, or there is any interruption in any service provided by the specified undertaker, the promoter shall repay the cost reasonably incurred by the specified undertaker in making good such damage, or restoring the supply, and shall—
(a)make reasonable compensation to the specified undertaker for any loss sustained by it; and
(b)indemnify the specified undertaker against all claims, demands, proceedings, costs, damages and expenses which may be made or taken against or recovered from, or incurred by, the specified undertaker,
by reason or in consequence of any such damage or interruption; and the fact that any act or thing may have been done by the specified undertaker on behalf of the promoter or in accordance with plans approved by the specified undertaker or in accordance with any requirement of the specified undertaker or under its supervision shall not, subject to paragraph 39, excuse the promoter from any liability under the provisions of this paragraph.
39. Nothing in paragraph 38 shall impose any liability on the promoter with respect to any damage or interruption to the extent that such damage or interruption is attributable to the neglect or default of the specified undertaker, its officers, servants, contractors or other agents.
40. The specified undertaker shall give to the promoter reasonable notice of any claim or demand under the provisions of paragraph 38 and no settlement or compromise of it shall be made without the prior consent of the promoter which shall not be unreasonably withheld.