Bombay HC on Jumpin Dispute : Arbitral Award must be Reasoned, Not Generous
There was Agreement dated 11.12.2004 between the petitioner and the respondent for three years to undertake contract manufacturing and packaging of beverages marketed under the brand name “Jumpin”
The respondent had pioneered the PET hot-filling technology.
By the Arbitral Award dated 4.4.2014, it was held that there was no extension of contract beyond December, 2007 and no case for compensation or damages was made out.
However, in the teeth of such clear and strong firm finding, the Arbitral Tribunal took sudden turn in the concluding portion of the Award and held that the absence of replies to certain emails of Kanti has kept it in the hope of renewal for which Kanti needs to be compensated by a sum of Rs.75 lakhs for the inconvenience caused.
HELD that this component of the Award is entirely unacceptable and shocks the conscience of the Court. It is like that the Rs.75 lakhs are awarded as consolation prize or an ex gratia payment.
Judgment dated 8.10.2025 (uploaded 27.10.2025) of the High Court of Bombay in Arbitration Petition No.11608 of 2014 (OS) of Hersheys India Pvt Ltd vs. Kanti Beverages Pvt Ltd

