DELTON CABLES LTD Vs. DEPARTMENT OF TELECOMMUNICATIONS

JUDGEMENT

(1.) The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter the "Act") challenges the impugned award dated 14th February, 2007 passed by the Ld. Sole Arbitrator rejecting the claims of Delton Cable Limited (hereinafter "Delton") against the DG, DOT and MTNL.

(2.) The brief background of the petition is that the Department of Telecommunications (hereinafter "DOT") issued notice inviting tenders bearing tender number 14-21/94-MMT(MMS) for supply of underground cables and other forms of cables on 30th November, 1994. Delton Cables Limited was one of the bidders, which submitted the bid in respect of the said tender. The bid was awarded to it. Disputes arose in respect of supplies made to MTNL in the Delhi region. The first purchase order was placed on Delton on 11th December, 1995. The second purchase order was placed on 12th August, 1996. Disputes in the present case relate to the second purchase order.

(3.) On the issue of sale tax, there was a departure in the purchase order from the tender conditions. As per the purchase order, the sales tax was to be deposited by Delton over and above the price and Delton, thus, sought clarifications, which were not given. Several letters were written by Delton seeking clarification, to which there was no reply. Supplies were completed in 1997. Delton then invoked the arbitration clause. Ld. Arbitrator rejected the claims of Delton, hence the present petition.