MAHANAGAR TELEPHONE NIGAM LIMITED Vs. TELEPHONE CABLES LTD

JUDGEMENT

(1.) This petition has been filed by the petitioner under Section 34 of Arbitration and Conciliation Act, 1996 challenging the order dated 29.05.2009 passed by the Sole Arbitrator in a dispute between the parties. Briefly stated, the facts of the case can be summarized in the following manner.

(2.) The brief facts of the case as per the petitioner are, that on 30.11.1994 a tender bearing No.14021/MT (MMS) was floated by the Department of Telecommunication (hereinafter referred to as DoT) for procurement of PIJF cables, opened on 24.01.1995. The procurement against the tender was for two years from the date of issue of 1 st advance purchase order. Supplies by all the successful bidders were to be made at L-1 rates.

(3.) On 22.01.1997, the letter of intent for 40 LCKM cables was issued to the respondent wherein it was stated that "prices of PIJF Cables for the purpose of obtaining present quantity will be provisional till applicable prices are available and shall be calculated at 95% of the total price (inclusive of all taxes and duties) finalized in tender dated 24.1.1995 on account of customs duty reductions in budget for 1996- 1997". As pert the petitioner, the prices were kept provisional because the budget for the 1996-1997 was announced on 23.07.1996 and there had been a reduction in the custom duty in the budget. As the finalization of the prices takes time, therefore the DoT issued the letter of intent only on 22.01.1997 and kept the prices provisional, as per the letter dated 22.01.1997 the supply of cables was to be completed by 31.03.1997 as per the monthly schedule of the petitioner.