JINDAL RAIL INFRASTRUCTURE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an appeal preferred by Jindal Rail Infrastructure Limited [hereafter referred to as "JRIL"] under Sec. 37 of the Arbitration and Conciliation Act, 1996 [in short, "1996 Act"] against the judgment dtd. 23/5/2022 [hereafter referred to as "the impugned judgment"] passed by the learned Single Judge.

(2.) The UOI, through its petition instituted under Sec. 34 of the 1996 Act, had assailed the decision rendered by the sole arbitrator concerning Claim No. 2 which was subject matter of the arbitral award dtd. 1/3/2019. Via Claim No. 2, JRIL had sought recovery of the additional amount in respect of BG Bogie Open Wagons [hereafter referred to as 'BOXNHL wagons"] manufactured and supplied by it, over and above the quantities which UOI initially ordered, and on account of breaches committed by UOI.

(3.) The dispute between JRIL and UOI is rooted in Clause 2.4 (renumbered as Clause 2.8) of the subject contract. Under Clause 2.4, UOI exercised its option to increase the ordered quantity during the currency of the subject contract, based on the price and terms and conditions on which it had placed an order for the original quantities. For convenience, Clause 2.4 of the subject contract is set forth hereafter: