LAWS(DLH)-2016-1-42

ENGINEERS INDIA LIMITED Vs. TEMA INDIA LIMITED

Decided On January 07, 2016
Engineers India Limited Appellant
V/S
Tema India Limited Respondents

JUDGEMENT

(1.) The appellant has filed the present appeal impugning the order dated 07.07.2015, whereby the petition under Sec. 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act') against the award dated 22.10.2012 passed by the sole Arbitrator, has been allowed and the award has been set aside.

(2.) The appellant - Engineers India Limited (EIL) had placed on the respondent - TEMA India Limited (TEMA) a purchase order dated 27.02.2008 for supply of nine heat exchangers - high pressure (screw plug/breach lock). The EIL was procuring the said equipment for Chennai Petroleum Corporation Limited ("CPCL"). The delivery period stipulated was 17 months from the date of purchase order and delivery was expected to be completed on or before 26.07.2009.

(3.) A clause for Price Reduction Schedule (PRS) for delay in delivery was stipulated in the purchase order. As per the PRS, as a consequence of delay in delivery, price was to be reduced by 1% of the total order value per week, subject to maximum of 10% of the total order value. The purchase order stipulated that the General Purchase Conditions (GPC) and other commercial terms and conditions, as sent with the RFQ and amendment thereon, would apply.