M/S. RAVI INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) In these proceedings under Sections 14 and 17, the Award of a Sole Arbitrator dated 27.1.1993, appointed by the parties, is involved. The petitioner has filed objections under Sections 30/33 of the Arbitration Act, 1940 (hereafter called "the Act") being I.A. 8705/2005 challenging the validity of the Award.

(2.) Briefly the facts are that the respondent, i.e. Union of India, floated a tender enquiry for purchase of 5230 Fire Extinguishe Rs. The petitioner responded to this enquiry; its offer was accepted and an order placed on it, on 9.9.1987. In terms of the order, the supplies were to be completed by 31.01.1988. It is not in dispute that the last date of supply was extended twice, to 21.7.1988 and later to 31.10.1988. Eventually, the Union of India determined that the petitioner defaulted in its commitment and did not effected the supplies within the time agreed; accordingly it cancelled the contract.

(3.) The Union went in for Risk Purchase and claimed amounts towards risk purchase compensation. The disputes between the parties were referred to arbitration of one Sh. Ram Bahadur, Sole Aribtrator, who was then working as Additional Legal Advisor to the Government of India.