CXL TITON ELECTRONICS PVT LTD. Vs. JOINT SECRETARY, MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

JUDGEMENT

(1.) The present petition has been filed by the petitioner under the provisions of Sec. 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator to adjudicate the disputed with respondent.

(2.) Petitioner is a Private Limited company dealing in RO Systems, Water Purifiers, Effluent Treatment Plants, Sewerage Treatment Plants and Water Softening Plants, who was awarded work under tender No. 7-15/2013 -14/PUR/DES/73 dtd. 18/9/2013 for installation, commissioning, operation and ultimately transfer of Reverse Osmosis Plants etc. capable of supplying minimum 7-12 lacs liters of treated RO water per day, by the respondents. Under the said work, petitioner was obliged to fulfil requirements of respondent No. 2- DMS by installing two machines which could provide approximately 12 lacs litres RO water per day, for which Respondent No. 2 (DMS) had agreed to provide petitioner two Borewell for 24 hours each. For accomplishing the work, petitioner had to provide shed, RO machines, two tube wells and pipe lines etc. at its own costs and had to invest Rs.3.5 Crores for installation of machinery, furniture and fixture to meet out the requirements of respondent No. 2. The work tender was for a period of five years to recover its investments and operational costs at the optimum supply of minimum 7 lacs litres of treated RO water on daily basis in the said operation period of five years.

(3.) According to petitioner, it was agreed that the said agreement was for 5 years @ Rs.99.00 per kiloliter of treated water being paid by the respondent No. 2 DMS to the petitioner for the first year and thereafter to be increased at the rate of 5% for every subsequent year. However, for reasons know to respondent No. 2, it could not get the permission from the Delhi Jal Board for extraction of ground water from the borewell made available to the Petitioner to an extent as was stipulated to be supplied for generation of 12 Lac liters of treated RO water. On 24/4/2014, respondent No. 2- DMS issued an amendment letter to revise the minimum and maximum uptake of the treated water from the petitioner, whereunder petitioner was required to supply minimum 4.375 lacs litres RO water per day and up to a maximum of 7 lacs litres of RO water per day to the Respondent No. 2- DMS a revised period of 8 years.