TECHNOFAB ENGINEERING LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) A short question arises for consideration in this petition filed by Technofab Engineering Ltd. against an Award dated 13 th May 2005 of the sole Arbitrator by which the Petitioner has been directed to pay the Respondent a sum of Rs.11,16,492 together with simple interest at 15% per annum from 23 rd January 1981 till the date of payment or the date of making the Award a rule of the court, whichever is earlier. By the impugned Award all the counter claims of the Petitioner were rejected.

(2.) The disputes which were referred to arbitration arose out of a supply order placed by the Director General of Supplies and Disposals ('DGS&D') on the Petitioner on 10 th August 1979 for the supply of three heat exchanger systems for the Gun Carriage Factory at Jabalpur required for cooling oil of furnaces. The scope of the work of the Petitioner in terms of supply was defined in Clause 4 of the contract which reads as under:

(3.) It is stated by the Petitioner that the supply of the materials was completed on 22 nd December 1981. The tests were carried out from 15 th June 1982 to 7 th August 1982 and the system was handed over on 10 th August 1982. According to the Petitioner, the Respondent sent a rejection note seven years later, on 16 th January 1989. Ten years later, on 11 th November 1999, the Respondent issued a demand note. Thereafter, the Respondent invoked the arbitration clause in the contract and by an order dated 30 th October 2000 referred the disputes to the sole Arbitrator.