JUPITER RUBBER PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Both these petitions have been filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "Act") challenging the Award dtd. 26/5/2017 passed by the Arbitral Tribunal. O.M.P. (COMM) 365/2017 has been filed by Jupiter Rubber Private Limited challenging part of the Award wherein imposition of Liquidated Damages has been upheld by the Arbitrator though with reduction from 10% to 3% as also challenging the rejection of the Claim of interest on delayed payments.

(2.) Omp(Comm) No. 54/2019 has been filed by the Union of India challenging the Award to the extent it has reduced Liquidated Damages (hereinafter referred to as "LD") from a sum of Rs.70,79,581.00 to Rs.23,12,875.00. Since both petitions lay a challenge to the same Award and common questions of fact and law arise, they are being disposed of by a common judgment. For the sake of convenience, Jupiter Rubber Private Limited is being referred to as Petitioner in both the petitions and Union of India is being referred to as Respondent.

(3.) Brief facts shorn of unnecessary details are that Respondent floated a tender on 25/10/2012 for purchase of 1,41,309 Light Weight Ground Sheets. Petitioner is a Registered Small Scale Industry in the business of manufacture of Light Weight Ground Sheets (hereinafter referred to as "Sheets"), out of special fabric, outsourced from the market. Petitioner made an offer on 26/11/2012 to supply @ Rs.501.00 per piece, aggregating to Rs.7,07,95,809.00. On 13/12/2013, Respondent accepted the offer of the Petitioner, however, at the rates prevailing in 2012, and the Petitioner provided a Bank Guarantee in the sum of Rs.70,79,581.00, which was initially valid upto 30/6/2015, but subsequently extended, at the instance of the Respondent upto 31/12/2016.