(1.) This is an application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996[1] for the appointment of a Sole Arbitrator by Glock Asia-Pacific Ltd.[2]
(2.) Facts: The Ministry of Home Affairs (Procurement Division)[3] floated a single party tender on 2/2/2011 for supply of 31,756 Glock Pistols. The bid was confirmed in favour of the applicant and a Tender of Acceptance was issued by the respondent on 31/3/2011. Clause 6[4] of the Tender of Acceptance, required the Petitioner to submit a performance bond of 10% of the value of the contract, being USD 13,29,093/-. Applicant furnished the performance bank guarantee[5] on 24/8/2011 and proceeded to perform its contractual obligations and in fact, by 6/8/2012 delivered the entire supply under the contract. The respondent accepted the consignment and paid the entire consideration by 11/11/2012.
(3.) The PBG which was issued on 24/8/2011 was extended from time to time during the subsistence of the contract and also thereafter till 2021, i.e., for nine years after the completion of the delivery and final payment under the contract. On 31/5/2021, the applicant informed the respondent that the PBG will not be extended any further. The respondent immediately invoked the PBG for INR 9,64,42,738/-, citing Clauses 11 and 18(c) of Schedule II of the Acceptance of Tender. These clauses, which provide for Guarantee and Warranty, are as follows:
ABOUT US "REGENT COMPUTRONICS PVT. LTD." is a Company incorporated in 1991 under the provisions of the Companies Act, 1956. Since its inception to 1995, the Company was busy in carrying out the activities related to various Banks' Job Work..
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