SANGHVI MOVERS LIMITED Vs. BHARATH HEAVY ELECTRICALS LIMITED

JUDGEMENT

(1.) THE dispute inter se the parties emanates from a contract placed by the respondent on the petitioner pursuant to a tender notice dated 25.06.2012 for supply of Hydraulic Axles and Pullers to transport consignments from Tiruchirapalli Plant/unit to various parts of the country, the petitioner having been found the highest bidder. The Letter of Intent dated 05.10.2012 and Letter of Confirmation of Contract with work/rate schedule dated 05.12.2012 were followed up with the formal contract agreement dated 11.12.2012.

(2.) THE petitioner alleges that it was constrained to withdraw the bid as per the notice dated 21.01.2013, as the respondent was pressurizing it to lift and transport huge quantity of consignment, which was over and above the capacity of the hydraulic axles owned by the petitioner and that too without settling the legitimate dues payable to the petitioner. Parties blame each other. The disputes could not be resolved. The petitioner, thus, issued a notice dated 28.03.2014 setting out the history of disputes and invoking arbitration, in view of the arbitration clause 28, which reads as under:

(3.) THE only aspect urged on behalf of the respondent is that the arbitration clause vested the authority to take up arbitration with the Executive Director of the respondent or his representative. On the other hand, the letter of invocation dated 28.03.2014 in para 22 urged as under: