LAWS(DLH)-2005-12-34

INDIA METAL Vs. UNION OF INDIA

Decided On December 16, 2005
INDIA METALS Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) This order shall dispose of respondents' objections under Sections 30 and 33 of the Arbitration Act. 1940 against the award dated 22.1.1992 by Sh.S.C.Goel sole arbitrator, ex Chief Materials Manager (S) Northern Railways. Baroda House, New Delhi.

(2.) Brief facts to comprehend the controversies are that the respondents invited tender enquiry No.211-S/1078/9133 due to open on 17.7.1991. Petitioner submitted his offer on 15.7.2001 at the net rate of Rs.151.50 each for the supply of 58,100 numbers of M.S.Tie Bars (for BGCI Sleepers) to RDSO Drg.No.T.404(M) ALT-NIL and conforming to the IRS Specification No.T-8. The offer of the petitioner was accepted and a purchase order dated 11.10.1991 was placed on him for supply of above-mentioned stores. The delivery period of the stores was till 7.6.1992 with the delivery clause as delivery will commence after 60 days from the receipt of technically and commercially clear purchase orders by the seller and will be supplied at the rate of 10,000 numbers per month thereafter. The petitioner acknowledged the receipt of purchase order by letter dated 15.10.1991 and requested for amendment in description of stores and for issuance of sale tax 'D' form and further asked for re- fixation of delivery period.

(3.) The petitioner claimed for re-fixation of delivery period by their letter dated 28.5.1992 which was declined by the respondent by letter dated 3.7.1992. Petitioner again requested for reconsideration for re-fixation of delivery period by letter dated 8.7.1992. The delivery period was extended without levy of liquidated damages and without benefit of price variation clause and petitioner was asked to give his consent by 1.9.1992 and it was intimated that on failure of the petitioner to, give consent, the contract shall be cancelled without further reference. Petitioner sent his consent by letter dated 31.8.1992 and yet again by letter dated 7.9.1992 requested for extension of delivery period for 90 days and therefore, the delivery period as extended from 7.6.1992 to 18.1.1993 without levy of liquidated damages.