KEI INDUSTRIES LIMITED Vs. DELHI VIDYUT BOARD

JUDGEMENT

(1.) This is a petition under Sections 14 & 17 of the Arbitration Act, 1940 to make the Award dated 23.4.1997 published by the Joint Arbitrators a Rule of the Court. The respondent No. 1/Delhi Vidyut Board, Previously known as Delhi Electric Supply Undertaking has filed the present objections in IA.No. 6536/97 under Sections 30 & 33 of the Arbitration Act, 1940 to the Award.

(2.) On 20.11.1992, the respondent No. 1 awarded a contract for supply of 750 K.M. "Control Cables" and the period of delivery under the Contract was from 19.5.1993 to 19.11.1993. On 10.8.1993 pursuant to the formal contract in writing, two bank guarantees were executed by the petitioner towards advance payment of 5% per cent each and the third bank guarantee towards performance for 10% per cent of the contract price, i.e., total value of Rs.1,05,99,906.00 was executed by the petitioner.

(3.) The petitioner's case is that the several reminders were sent by the petitioner to the respondent to open the Letter of Credit and in between, from the period 27.1.1994 to 24.6.1994, 190 K.M. of cables of the value of about Rs.1.50 crores which are about l/7th of the contracted amount of 750 K.M. of cables, were supplied by the petitioner and accepted by the respondent.