[1] We heard this appeal on 17 September 2015 and after hearing the respective parties, we reserved our decision to a date to be notified to the parties by the court. We now append our grounds for our decision today. This Grounds of Judgment has been seen by my learned sister YA Rohana Yusuf JCA who has agreed to the same. My learned brother YA Hamid Sultan Abu Backer JCA will deliver a separate judgment. We will refer to parties as they were described in the High court, ie appellant as the plaintiff and the respondent as the defendant.

Facts Germane To Be The Appeal

[2] In dealing with the defendants counterclaim, the Arbitral Tribunal in this case found that the defendant was not entitled to recover any loss or damages arising from the termination of the contract. The Arbitral Tribunal found absence of evidence to support its counterclaim. The Arbitral Tribunal then went on to say that it would proceed to use the factor of inflation set at 20% being a reasonable sum and the Arbitral Tribunal proceeded to find on the following basis. The balance of 30% of the contract price RM260,470.20 add with 20% inflation RM52,094.04 = RM312,564.24.

[3] This issue was