SMARTCHIP LTD Vs. CENTRAL BUREAU OF NARCOTICS

JUDGEMENT

(1.) This is an application under Section 8 of the Arbitration and Conciliation Act, 1996 (hereafter referred as 'the Act') seeking reference of the disputes which are the subject matter of the present suit, to arbitration.

(2.) The brief and undisputed facts emerging on a reading of the plaint averments and application are narrated as follows.

(3.) The plaintiff and the defendants entered into an agreement on 7.12.2001 by which the plaintiff was nominated as a 'Project Implementer'. The work specifications, terms and conditions of the contract were outlined in various clauses of the Agreement. Originally, as per clause 16, the plaintiff would submit one surety in place of bank guarantee, spelt out in the tender as a trade off for 20% advance payment and that a solvent surety certified by any scheduled Bank could be sufficient.