BWL LTD Vs. MAHANAGAR TELEPHONE NIGAM LTD

JUDGEMENT

(1.) Petitioner has preferred the present petition under Section 34 read with section 13 of the Arbitration and Conciliation Act, 1996 challenging the award dated 24.10.2002 by the Sole Arbitrator (Mr.) Justice S. Ranganathan (Retired). BACKGROUND FACTS

(2.) The Respondent No. 1 had, on 25.5.1993, floated a tender, inter alia, for supply of 1672 Kms optical fiber cable with joining materials and accessories. The petitioner submitted its bid in response to the said tender. After going through the evaluation process, on 26.7.1994, a letter of intent was issued by Respondent No.1 to the petitioner indicating its intention to place an order for supply of 49 Kms of optical fibre cable and accessories upon the petitioner, subject to certain terms and conditions. The delivery of the materials had to be completed by February 28, 1995 at the latest. The Respondent No. 1 thereafter, issued a purchase order dated August 22, 1994 for supply of 49 kilometers of optical fiber cables (OFC) along with the accessories on the terms and conditions indicated therein.

(3.) Petitioner, however, could not commence production of OFC within time to be able to supply the same to the Respondent within the contractual period. Consequently, the petitioner repeatedly sought extension of delivery period. Extension of time was granted by the Respondent upon certain terms and conditions, which were incorporated in the various amendments to the purchase order. These have been discussed later in the course of the judgment.