ASHOK LEYLAND LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This application filed under Sections 14 and 17 of the Indian Arbitration Act, 1940 seeks to make the award dated 30th August, 1996 given by Shri R.L. Meena, Additional Secretary, Law, Government of India as a Rule of the Court. Simultaneously the petitioner has also sought the dismissal of the objections filed by the respondent UOI under Sections 30 and 33 of the Indian Arbitration Act, 1940 to the said award.

(2.) The claimant/plaintiff averred as under: (a) The dispute involved in the present petition arises from supply of 13 Crash Fire Tenders (CFTs) which were offered by the claimant to the respondent by its letter dated 5th March, 1990 @ Rs. 34,05,000 /- per unit for the supply for 13 units or supply of 6 units @ Rs. 35,01,000/- each. The letter of the claimant as per Clause 9 sought an Essentiality Certificate to enable the claimant to import fire power, accessories, etc. Thereafter pursuant to the negotiations between the parties on 4th April, 1990, letter dated 5th March, 1990 issued by the claimant was modified and further letter dated 6th April, 1990 containing the modified conditions was issued and price was amended to Rs. 33,35,000/ - for 13 CFTs. A general clause was also inserted which provided that all other terms and conditions of letters dated 5th March, 1990 and 21st March, 1990 will remain unchanged and the Essentiality Certificate was also referred to. The relevant portions of letters dated 5th March, 1990 and 6th April, 1990 read as under:

(3.) The respondent/UOI's case before the Arbitrator was as under: