BHARAT SANCHAR NIGAM LIMITED Vs. SUDARSHAN TELECOM

JUDGEMENT

(1.) THE petitioner in these proceedings under Section 34 questions an Award made by the sole Arbitrator on 12. 6. 2006. The Arbitrator awarded rs. 37,15,330/- with interest pendente lite and future interest at the rate of 9% p. a. in favour of the claimant, i. e. the respondent.

(2.) THE undisputed facts necessary deciding this case are that the petitioner published a tender, eliciting responses and seeking supply of a length of 12f OFC cables of 60,000 Kms. and 24f OFC cables to the extent of 12,000 Kms. Since these were optical cables, "fc cables" implied "fibre Kilometers". The respondent submitted a tender quoting its rates; it was opened on 10. 8. 2001. The petitioner eventually issued an Advance purchase Order (APO) on 26. 11. 2001. The APO, stipulated in clause 3, as follows:-

(3.) THE respondent signified its acceptance of the APO on 3. 12. 2001 and, thereafter, commenced its supplies. There is no dispute that the respondents supplied substantial quantity of the contracted product; apparently, it supplied the entire quantity of 24f cables and 984 Kms. of 12f cables by 31. 3. 2002, i. e. the scheduled delivery period. In respect of the balance of 60. 63 Kms. of 12f, it sought extension which was undeniably granted. The respondent completed the delivery of this balance portion within the time granted, i. e. 28. 4. 2002. The respondent then raised a dispute alleging that the petitioner did not pay the contracted amount and was withholding the sum of about Rs. 37 lakhs. Since the disputes were arbitrable, they were referred to the decision of the sole Arbitrator Ms. Justice Usha Mehra. By the award, the sole Arbitrator held in favour of the respondent and also directed payment of post award at 9% p. a. interest. The petitioner has assailed the award on the ground that it is contrary to the terms of the contract and, therefore, opposed the public policy and has invoked Section 34 of the Arbitration and Conciliation act, 1996. It has placed reliance on the judgment of Supreme Court in OIL AND natural GAS CORPORATION LTD. VS. SAW PIPES LTD. , (2003) 5 SCC 705.