INTERNATIONAL PHARMACEUTICALS Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition has been filed by the petitioner under Sections 10 and 11 (5) of the Arbitration and Conciliation Act, 1996 read with Clauses 2 and 3 of the Scheme, 1996 framed by Delhi High Court for appointment of Arbitrators.

(2.) A Contract was awarded to the petitioner for procurement of anti-Leprosy drugs for Rs.27.45 crores vide Agreement dated 29.3.1995 and the general conditions and terms contained in the bidding documents for procurement of these drugs under National Leprosy Eradication Programme ( in short 'NLEP' ). The entire quantity of drugs under the contract were supplied by the petitioner. Subsequently, another offer was made for supply of additional quantity of same drugs valuing Rs.13.722 crores on the same terms and conditions as applicable to the earlier contract. The offer was accepted and a contract was executed dated 15.3.996.

(3.) In the meanwhile, respondent cancelled the said agreement dated 15.3.1996 vide letter dated 10.7.1996 on the ground that adequate stock of such drugs were available with the Government. The petitioner aggrieved by the cancellation of the said contract approached the respondent-Union of India in terms of Clause 26.2(a) of the General Conditions of the contract. Clause 26 of the General Conditions of contract is as follows |-