BHARAT SANCHAR NIGAM LIMITED Vs. VINDHYA TELELINKS LIMITED

JUDGEMENT

(1.) Shri A.S.Bhola, General Manager (Finance) Punjab Telecom Circle, acted as the Sole Arbitrator between M/s Vindhya Telelinks Ltd. and Bharat Sanchar Nigam Limited with regard to disputes and differences that arose out of two Purchase Agreements entered by them to supply cables. The learned Arbitrator entered upon the reference and proceeded to finally pass the award on 25.9.2001. Bharat Sanchar Nigam Limited is unhappy with the award. It is because of that, that the objections under Section 34(2)(a)(iv) read with Section 14(1)(a)(2) and Section 33(2) and (4) of the Arbitration and Conciliation Act, 1996 have come to the fore.

(2.) The claims which were referred to the Arbitrator were as follows:- 1.Deduction of Rs.97,64,547/- from the final invoice value admitted by the petitioners due to application of new rates for the supplies made within 21 days of the contracted original delivery period detailed in DGM (A) O/O CGMT JandK Telecom Circle letter No.160-10/Eng/Legal/VTL/2001 dated at JT : 8.5.2001 2.Recovery of Rs.10,72,758/- from the petitioners bills due to duct length detailed in DGM(A) O/o CGMT Jand K Telecom Circle letter No.160- 10/Eng/Legal/VTL/2001 dated at JT 8.5.2001 3.Petitioner's claim for interest at the rate of 18% per annum up to the date of award and thereafter as per section 31(7)(b) of the Arbitration and Conciliation Act, 1996.

(3.) The learned Arbitrator gave his award in favour of M/sVindhya Telelinks Ltd in respect of two out of the three claims by holding as under :- 1.The deduction of Rs.97,64,547/- from the final invoice value admitted by the petitioner due to application of new rates for the supplies made and unconditionally accepted by the respondents within 21 days of the contracted original delivery period is not in order. The respondents are directed to release the payment without any further delay. 2.The recovery of Rs.10,72,758/- by treating the tailored length not as standard length but as short length is result of wrongful interpretation of the relevant clauses of agreement. The respondents are directed to release the withheld payment without any further delay. 3.No interest is admissible for the withheld payment however the interest will be payable if there is inordinate delay in release of the withheld payments after publication of the award and receipt of the same by the petitioner.