UNION OF INDIA THROUGH Vs. ITS SECRETARY

JUDGEMENT

(1.) Ia 13972/2018

(2.) The Arbitrator by the Impugned Award has found that the respondent had failed to make the supplies in terms of the Purchase Order. The Arbitrator further held that the excuse of the respondent that it was not able to make the supplies for lack of response from the petitioner to its proposal for entering into a collaboration with another company was unjustified. Therefore, the respondent was found to be in breach of the Agreement, that is, the Advance Purchase Order and the consequent Purchase Order placed by the petitioner on the respondent.

(3.) At the same time and in spite of this finding, the Sole Arbitrator had held that as the petitioner was unable to prove any loss suffered by it due to this breach of the Agreement, it was not entitled to retain the proceeds of the Performance Bank Guarantee encashed by it and has ordered a refund of the said proceeds alongwith interest @9% per annum with effect from the date of encashment of the Bank Guarantee till realization. The Arbitrator has also awarded costs assessed at Rs.3 lacs in favour of the respondent.