ZEMAN TECHNOGROUP Vs. UNION OF INDIA

JUDGEMENT

(1.) These two common appeals deal with the same subject matter i.e. the legality and validity of an International arbitration award dated 27.08.2015.

(2.) The parties i.e. M/s Zeman Technogroup (hereinafter referred to as "Zeman"), a Czech incorporated company, entered into a contract for the supply of 29,740 pairs of Anti-Mine boots (BAMI). The agreement was entered into by the parties on 23.03.2009. The payment terms were amended on 30.09.2009. The working of the contract led to disputes between the parties. These were referred to International Arbitration. In the majority award rendered on behalf of the Tribunal by two of its members, it was held that the Union of India ("Union" hereafter) was in breach of the conditions. The Tribunal rejected the Union's blast reports which were its pretext for denying the payments due to Zeman. It was directed that the Tribunal held that the claimant/Zeman was entitled for refund of the amount of the bank guarantee to the tune of US $377,698 which was encashed on 16.04.2012 along with 12% interest.

(3.) As to the issue of damages, the Tribunal concluded as follows: