CROMPTON GREAVES LTD., (FORMERLY PUNJAB POWER GENERATION MACHINES LTD.,) REP. BY ITS SENIOR GENERAL MANAGER (LEGAL) AND POWER OF ATTORNEY, MR. S. JAYARAMAN, PUNJAB Vs. TAMIL NADU ELECTRICITY BOARD, REP. BY ITS CHIEF ENGINEER (HYDRO), CHENNAI AND

JUDGEMENT

(1.) The petitioner, Crompton Greaves Ltd., formerly known as Punjab Power Generation Machines Limited, engaged in design, manufacture, test at works, supply, supervision of erection, erection testing, commissioning of generating unit and associated accessories for power generations. The respondent / Board decided to put up unit at Parsons Valley at Nilgris District and invited sealed tenders for design, manufacture and other related works for generation of power for Parsons Valley Unit (Kundah PH VI), Kundah Ultimate Stage Hydro Electric Project in Tamil Nadu under the specification No. HE 1972. The petitioner was the successful tenderer. The respondent / Board entered into a contract with the petitioner in this regard under letter of acceptance dated 24.02.1995 and subsequent purchase order POH 219 dated 28.03.1995. The value of the contract is Rs.17,23,16,160/ -. During the execution of the contract, the petitioner raised a dispute regarding the payment of foreign exchange rate variations and the same was not accepted by the respondent / Board on the ground that the Board was not liable to pay the said amount.

(2.) After the dispute arose, the Board and the petitioner referred the following two issues for Arbitration namely,

(3.) While the disputes were pending, the petitioner, in their letter dated 07.01.2000 addressed to the Chief Engineer/ Hydro, Tamil Nadu Electricity Board, Chennai expressed their willingness to refer the following issues also to the Arbitration namely,