RAM ABHOSHAN Vs. PEC LIMITED

JUDGEMENT

(1.) This petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the Arbitral Award dated 28th April, 2015 passed by the majority of the members of the Arbitral Tribunal dismissing the claim of the petitioner.

(2.) The disputes between the parties have arisen out of the Tender No. PEC/Gold Del/20:80/2014-15/Lot-8 dated 12th May, 2014 floated by the respondent with respect to "Net Trading Margin on Sale of Gold by PEC to be imported in 8th Lot of 337 kg. under 20:80 scheme of RBI".

(3.) The Reserve Bank of India (RBI) vide its Circular dated 14th August, 2013 had clarified its instructions with respect to import of gold by nominated banks/agencies/entities whereunder the Nominated Banks/Nominated Agencies and other Entities were to make available gold for domestic use only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the Gold Deposit Scheme (GDS) against full upfront payment on certain conditions. Under 20:80 Scheme of RBI, 20% of the quantity of imported gold was earmarked for export purpose only and the remaining 80% quantity of imported gold was meant for sale in domestic market. As the import of gold was restricted through only a few Agencies, the respondent being one of them, the respondent floated the tender for Net Trading Margin (NTM) where the bid was invited only for 80% quantity of gold meant for domestic use.