OMNI AGATE SYSTEM PVT. LTD. Vs. SOUTHERN RAILWAY

JUDGEMENT

(1.) HEARD Mr. S.R. Ragunathan, learned counsel appearing for the petitioner and Mr. V.G. Suresh Kumar learned counsel appearing for the respondent.

(2.) THESE petitions have been filed under Section 11(6) of the Arbitration and Conciliation Act, to appoint a sole Arbitrator to resolve the dispute in terms of the Tender Notification No. M/C37/Pub/Tender/Led/Ms/II/07 and M/C37/Pub/Tender/Led/MAS/II/07, dated 30.10.2007 and 04.12.2007 respectively.

(3.) THE petitioner would submit that in accordance with the said condition, the petitioner remitted a sum of Rs. 18,48,000/ - as Licence Fee and furnished a Bank Guarantee of Rs. 2,27,200/ -. The petitioner would further state that they were not aware nor they were informed to the respondent about an order passed by this Court in W.P. No. 7143 of 2006, banning installation of LED Displays and hoardings in Heritage Buildings as well as in the public places. Subsequently, the respondent issued a letter on 30.07.2008 for change of location. According to the petitioner the inordinate delay caused by the respondent in assigning a suitable change of location materially affected the terms and conditions of contract. It is further submitted that a show cause notice was issued to the petitioner for which the petitioner has submitted a reply and thereafter by order dated 17.03.2010, the contract was terminated. The petitioner made a representation on 10.05.2010 to withdraw the termination notice and sought for renewal of the contract and the petitioner also sought for waiver of service connection charge for the period during which the termination of contract would be in vogue till resumption of operation. The petitioner preferred an application under Section 9 of the Act in O.A. No. 653 of 2010 for grant of an order of interim injunction to restrain the respondent from invoking the Bank Guarantee. Initially an ex -parte order of injunction was granted which was subsequently vacated by order dated 15.11.2010. Aggrieved by the same, the petitioner preferred an appeal before the Hon'ble Division Bench in O.S.A. Nos. 9 & 10 2011, challenging the dismissal of the applications in O.A. Nos. 653 & 657 of 2010, dated 15.11.2010. The Hon'ble Division Bench disposed of the Appeals with certain directions, by order dated 01.07.2011. The operative portion of the order and direction issued reads as follows: -