India, Oct. 28 -- The Bombay High Court has set aside an arbitral award directing Hershey's India Pvt. Ltd. to pay Rs.75 lakh to Kanti Beverages Pvt. Ltd., observing that the sum was granted as a "consolation prize" without any basis in evidence or analysis.

Justice Somasekhar Sundaresan, on October 7, noted that while the arbitral tribunal had rightly found no liability on Hershey's part under the contract, it "somehow found it fit to pick a number of Rs.75 lakh virtually out of a hat," merely because Kanti Beverages had "harboured hope" of a contract renewal.

"The award is entirely unacceptable and shocks the conscience of the court," Justice Sundaresan said, terming it "perverse" and contrary to the tribunal's own reasoning.

Hershey...