UNION OF INDIA Vs. PEECO HYDRAULIC PVT LTD

JUDGEMENT

(1.) These are objections by Peeco Hydraulic Private Limited ('PHPL') under Sections 30 and 33 of the Arbitration Act, 1940 ('Act') to an Award dated 18 th January 1991 passed by the sole Arbitrator in the disputes between the parties arising out of an acceptance of a tender by the Directorate General of Supplies & Disposal ('DGS&D') issued on 23 rd June 1980 whereunder PHPL was to supply an Oil Hydraulic Spring Testing Machine.

(2.) According to the objector, Clause 14 of the tender documents contained a question whether the tenderer agreed to sole arbitration by an officer of Ministry of Law to be appointed by the DGS&D as provided in Clause 24 of the General Conditions of Contract ('GCC') Form DGS&D- 68 (Revised). It was stated that omission to answer the question would be deemed as acceptance to the Clause. PHPL answered the question in the negative.

(3.) On 7 th August 1992, the DGS&D cancelled the tender and invited fresh tenders in which PHPL again was the lowest. DGS&D reinstated the old tender of 30 th December 1982 and cancelled it again on 14 th June 1983.