Bombay High Court Quashes ₹75 Lakh Arbitral Award of Kanti Beverages for Lacking Contractual Basis

The Bombay High Court set aside the arbitral tribunal’s award of ₹75 lakh compensation to Kanti Beverages Pvt. Ltd. against Hersheys India Pvt. Ltd., calling it “picked virtually out of the hat.”

Justice Somasekhar Sundaresan held that the tribunal’s reasoning lacked any factual or contractual basis, as the manufacturing agreement for the Jumpin beverage brand expired on December 6, 2007, without renewal or wrongful termination.

Despite rejecting Kanti’s claims, the tribunal had inexplicably granted compensation based on Hershey’s silence during renewal discussions.

The Court ruled that such compensation “shocked the conscience,” observing that no payment could arise without a valid contractual extension.

[Hersheys India Pvt Ltd v Kanti Beverages Pvt. Ltd.]