VIDEOCON TELECOMMUNICATIONS LIMITED Vs. IBM INDIA PRIVATE LIMITED

JUDGEMENT

(1.) Introduction

(2.) The impugned award was rendered in the context of disputes that had arisen between the parties in relation to an agreement "Service Agreement" dated 16.09.2009 for execution of the work of supply, installation, commissioning, integration, maintenance and operation of information technology systems to roll out, support and expand the GSM Network in India. The said agreement is hereafter referred to as "the Agreement".

(3.) By the impugned award, the Arbitral Tribunal has awarded an aggregate sum of Rs. 135,25,39,824/- alongwith interest at the rate of 12% per annum (except the amounts awarded against the claim of late payment fees, taxes on hardware, return of spares and not to use IBM's software till the payment of Termination Charges) in favour of IBM. The Arbitral Tribunal has also awarded an aggregate sum of Rs. 33,35,98,591/- alongwith interest at the rate of 12% per annum (except the amount of Rs. 48,70,79,281/- awarded against the claim of refund of Annual Service Charges, Rs. 30,87,19,267/- towards interest on counter claims and refund of hardware price) in favour of VTL.