ITI LTD Vs. PAR PRESSINGS

JUDGEMENT

(1.) THESE objections have been preferred by the petitioner ITI Limited under section 34 of Arbitration and Conciliation act, 1996 (for short ,,the Act. to assail the award dated 16/06/2001 passed by the sole arbitrator, Sh. Devender Kumar Sangal, former Secretary and Director General, Department of Telecommunications, whereby the claims of the respondent, who was claimant before the arbitral proceedings, were awarded.

(2.) AT the relevant time, the petitioner ITI Limited used to undertake the manufacture and assembly of various mechanical products. The respondent, Par Pressings - a small scale industry, was selected as an Ancillary Unit for the supply of Unit Assemblies (UTAs.. These UTAs were the sub-assemblies of the Cross Bar Telephone Exchanges manufactured by the Petitioner Company which they supplied to Department of Telecommunications (DOT.. Sometime in January, 1992, the Cross Bar Exchanges were phased out by the DOT. Consequent to the phasing out of the Cross Bar Exchanges, the DOT cancelled the orders placed by it on the petitioner. The petitioner company vide its communications dated 05.02.1992, 07.03.1992 and 30.04.1992 required the respondent to stop the supply of UTAs. This gave rise to claims by the respondent against the petitioner.

(3.) DUE to continuous persuasion of the respondent, the petitioner formed a high level committee to look into the claims of the respondent and resolve the matter satisfactory. The committee met on 23/09/1992 and on 01/10/1992 in which the respondent also participated and briefed the committee about its claims. In the meeting held on 01/10/1992 various decisions were taken in which the UTAs worth Rs. 3,61,703/- were accepted by the petitioner. The petitioner also agreed that the other claims of the respondent be forwarded to DOT for compensation.