MAHANAGAR TELEPHONE NIGAM LTD. Vs. HCL INFOTECH LTD.

JUDGEMENT

(1.) The challenge in the present petition under Section 34 of the Arbitration & Conciliation Act, 1996 ("Act") is to an award dated 27th August, 2014 passed by the Sole Arbitrator in the disputes in between the Petitioner Mahanagar Telephone Nigam Limited ("MTNL") and the Respondent M/s HCL Infotech Limited ("HCL").

(2.) The background to the present petition is that MTNL issued a tender notice dated 24th September, 2009 inviting bids for supply of equipments, installation, testing, operation, management, commissioning and making over the communication infrastructure for the Common Wealth Games 2010 (CWG 2010) to MTNL, Delhi on a turnkey basis. The work also involved decommissioning the system/equipments and redeploying and integrating them with MTNL's existing IP/MPLS (Multi Protocol Label Switches) network in Delhi and Mumbai.

(3.) HCL's bid being the lowest was accepted and MTNL issued an Advance Purchase Order (APO) dated 6th February, 2010 followed by three Purchase Orders (POs) dated 12th March 2010, 17th May 2010 and 27th July 2010. On 2nd October, 2010 MTNL approved the commissioning of the "communication infrastructure network" for the CWG with effect from 28th September, 2010. The further work of decommissioning and re-deployment with existing infrastructure of MTNL at Delhi and Mumbai were to take place after the conclusion of the CWG. The case of HCL was that while a substantial part of the contracted sum was paid to HCL after the conclusion of the CWG, the money due on redeployment was not. It is this dispute which was referred to the Sole Arbitrator.