LAWS(DLH)-2019-4-113

UNION OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS THROUGH ITS SECRETARY Vs. SHYAM TELECOM LIMITED

Decided On April 23, 2019
Union Of India Ministry Of Communications Department Of Telecommunications Through Its Secretary Appellant
V/S
SHYAM TELECOM LIMITED Respondents

JUDGEMENT

(1.) This is a petition preferred under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter referred to as "1996 Act") against the Award dated 27.07.2018. The petitioner before me is, in effect, the Department of Telecommunication (hereafter referred to as "DOT"). The DOT has preferred the instant petition via Union of India, Ministry of Communication (in short "UOI"). The respondent, on the other hand, is a company by the name Shyam Telecom Limited (hereafter referred to as "STL").

(2.) The dispute lies in a very narrow compass. The DOT/UOI is aggrieved by the fact that the learned Arbitrator has allowed STL's claim for recovery of a sum of Rs.70,48,000/- along with interest at the rate of 9% per annum on the ground that encashment of Performance Bank Guarantee (in short "PBG") by DOT/UOI was bad in law as it was unable to prove the loss and/or damage suffered by it.

(3.) Therefore, before I proceed further and examine the contentions advanced on behalf of the parties both for and against the impugned Award, it may be necessary to note the background circumstances and facts which have led to the institution of the present petition.