PARMALI WALLACE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter called the 'Act' for short), the petitioner company seeks (i) declaration that the respondent Railways cannot withhold, adjust and/or recover the petitioner/claimant's dues in other contracts vide their letter No.AS/S/O/Recovery dated 9/7/1996, (ii) an injunction restraining respondent Railways not to effect recovery and (iii) a mandatory injunction directing the respondent Railways to forthwith pay the amounts due to the petitioner /claimant in certain bills, of course, in other contracts.

(2.) According to the petitioner, two purchase orders dated 10/6/1991 and 2/7/1991 were placed on petitioner. The first order was for the supply of 1030 Nos. FRP Glass Shutter arrangement for BEML Coaches to item 1 to 12 except item 8 of RDSO SK No. 85166 alt.(1) Mat. & Specn. as per drg. and part drg. mentioned thereon conforming to RDSO schedule of requirement No. C-8411 and C-8409 @ 259.00 each D.P. upto 15.3.92 against P.O. No. 07901931102422 dated 10/6/91. Second order was for supply of 18081 Nos. of FRP Glass Shutters Arrangement from items 1 to 8 to 13 RDSO SK No. 85166 alt (a) Mat. & Specn. as per drg./pt. drg. mentioned thereon to RDSO Schedule of Tech. Ref. C-8411 @ 247.00 at a total value of Rs. 53,76,179.00 with D.P. upto 305.92 against P.O. No. 07901812102934 dated 2/7/1991.

(3.) The petitioner failed to supply the material. On 9/7/1996, letter of withholding the amount was issued on failure of the petitioner company to pay the loss suffered by the Railways on account of non-supply of shutters under the risk purchase orders.