N.V.RAMANA, J. - (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: "10. In the event that you are forced to keep your equipment and manpower idle due to non availability of work fronts due to reasons attributable to DCM or due to legal disturbances not connected with you, you shall be compensated as follows: (i) Maximum seven days of stoppage of work without any compensation. (ii) CGL reserves the right to advice you to demobilize partially or fully in lieu of paying compensation for such delays. Under such circumstances, you shall be paid such compensation towards transportation of equipment to Site at mutually agreed rates. (iii) Suitable time extension shall be given to complete the work to compensate the delay caused due to the stoppage of work. 11. Storage and Security: you will be responsible to provide necessary stores, office and labour camps for your staff at site. Only open area for construction of above will be given to you. Electricity will be provided at one point on chargeable basis at actuals. You will be responsible to tap the same to your required place. A format work order will be charged subsequently which will cover other General Terms and Conditions. Labour rules, Workmen Compensation etc. which may not be covered by this LOI and the same shall also be part of this LOI." ;