LAWS(DLH)-2010-3-41

BHARAT SANCHAR NIGAM Vs. HARYANA TELECOM

Decided On March 10, 2010
BHARAT SANCHAR NIGAM LIMITED Appellant
V/S
HARYANA TELECOM LIMITED Respondents

JUDGEMENT

(1.) Present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "Act, 1996") for setting aside the arbitral Award dated 30th January, 2009 passed by the Sole Arbitrator, Mr. Justice C.L. Chaudhry (Retd.).

(2.) The only issue that arises for consideration in the present proceedings is whether levy of liquidated damages by petitioner-objector is to be on the total value of the Purchase Order inclusive of duties and taxes or whether duties or taxes have to be excluded. Learned Arbitrator in the impugned Award has rejected the petitioner-objector's argument for levy of liquidated damages on the Purchase Order inclusive of duties and taxes. The relevant portion of the impugned Award reads as under:

(3.) Mr. Lalit Bhardwaj, learned Counsel for petitioner-objector submits that the impugned Award is contrary to the contract executed between the parties inasmuch as in accordance with Clause 15.2 of Section III of General Conditions of Contract (in short "GCC"), the petitioner-objector is entitled to levy liquidated damages on total value of the Purchase Order, which according to him includes both excise and sales tax component. In this connection, Mr. Bhardwaj relies upon Clauses 1 and 15 of Section III of GCC, which read as under: