DYNA TECHNOLOGIES PVT. LTD. Vs. CROMPTON GREAVES LTD.

JUDGEMENT

(1.) The question involved herein revolves around the requirement of reasoned award and the cautionary tale for the parties and arbitrators to have a clear award, rather than to have an award which is muddled in form and implied in its content, which inevitably leads to wastage of time and resources of the parties to get clarity, and in some cases, frustrate the very reason for going for an arbitration.

(2.) This appeal is filed against the final order and judgment dated 27.04.2007, passed by the High Court of Judicature at Madras Signature Not Verified Digitally signed by whereby the High Court partly allowed the appeal filed by the respondent and set aside the award of Arbitral Tribunal relating to claim no. 2 for payment of compensation for the losses suffered due to unproductive use of machineries.

(3.) Brief facts of the case are that a contract was entered into between DCM Shriram Aqua Foods Limited (hereinafter referred to as 'DCM' in short) and M/s. Crompton Greaves Limited (hereinafter referred to as "CGL" in short) for an aquaculture unit to be set up by such Principal, namely, DCM. CGL invited tenders for carrying out certain works for construction of ponds, channels, drains and associated works. The appellant M/s Dyna Technologies Pvt. Ltd. gave its proposal, estimate and quotation for carrying out the work. Thereafter, the respondent CGL placed a letter of intent dated 25 th July, 1994, relevant portions of which are as under: