Judgment :-

R.V. Raveendran, J.

This appeal by special leave relates to the validity of an arbitration award made against the respondent. The respondent (also referred to as the `Corporation) entered into a contract dated 9.6.1984 with the appellant (also referred to as the `contractor) for supply of 32 lacs bamboo mats at a price of Rs.3.35 per mat to be supplied by the appellant, inclusive of sales-tax, F.O.R. destination. In pursuance of the said contract the respondent supplied 5,59,554 mats. The contractor sent various communications requesting for joint inspection and payment.

2. As its demands were not complied with, at the instance of the appellant, the disputes were referred to arbitration. The claims of the contractor were as follows:

(i) Amount due towards supplies Price of 5,59,554

mats at Rs.3.35 each Rs.18,74,505.90

Less: Amount paid by respondent

(Initial claim:Rs.13,94,710.60

subsequently reduced) Rs. 4,86,114.75

Rs. 13,88,391.15

(ii) Loss of profit at the rate of Rs.1 lac p.m.from Dec.,

1984 to May, 1985

Rs. 6,00,000.00

(iii) Loss of business on account of supply orders

placed by the appellant with another agency

Rs. 5,00,000.00

(iv) Refund of earnest money

Rs.