In Brief
Dyna Technologies, a contractor, disputed an arbitral award concerning compensation for losses from unproductive use of machinery after the respondent Crompton Greaves terminated their contract. The High Court set aside the arbitrator's award for lacking adequate reasoning. The Supreme Court held that while arbitral awards need not be as detailed as court judgments, they must contain proper, intelligible, and adequate reasons. An award mixing factual narration with mere restatement of contentions without legal reasoning is unintelligible and cannot stand. However, given the 25-year-long litigation, instead of remanding to the tribunal, the Court settled the dispute by directing the respondent to pay Rs. 30 lakhs to the appellant as final settlement.
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