MODERN INDUSTRIES Vs. EXECUTIVE DIRECTOR RAILWAY STORES

JUDGEMENT

(1.) THE challenge in this petition under Section34 of the Arbitration and Conciliation Act, 1996 (Act) is to an Award dated 1st July, 2014 passed by the learned Sole Arbitrator in disputes arising between Modern Industries, the Petitioner, and the Respondent, the Executive Director, Railway Stores.

(2.) THE Contract dated 16th January, 2012 was entered into by and between the parties whereby the Petitioner was to manufacture and supply 1771 VUs of four specific wagon types, BOXNHL, BCNHL, BTPGLN, BTPN. Clause 1.1 of the Contract stated that out of the allocation of 1771 wagons, it had been decided to release the order for manufacture and supply of 886 wagons, the details of which were set out in Clause 1.2. In terms of Clause 2.0 of the contract, the order for the 885 wagons was withheld "on account". It was stated that the Respondent reserved its right to place the order for the manufacture and supply of the said wagons in terms of the details given in Clause 2.1 of the Contract.

(3.) CLAUSE 2.2 of the Contract stated that the allocation in terms of Clause 2.1 shall be released to the Petitioner "at the end of six months from the date of receipt of the order (i.e.31.07.2012) provided you have supplied at least 50% of total outstanding RSP orders as on 01.08.2011 and current orders placed against this tender (detailed at para 1.2 above) during February, 2012 to July 2012". Clause 2.6 of the contract stated: