(1.) The Commercial Arbitration Petition and the Commercial Arbitration Application are fled by an entity that had an advertising display agreement with the Central Railway. The Central Railway issued a tender for advertising displays on certain railway coaches of specifc trains. The tenders specifed a fve-year term. The Central Railway accepted the Applicant's bid. The Applicant was to pay Rs. 78,31,139/- per month for a period of fve years with a 10% escalation. There were also provisions for a security deposit.
(2.) Details about an extension of time to submit the necessary bank guarantee are not relevant at this stage. There was in October 2018 a request from the Applicant to adjust a balance amount of Rs 53 lakhs from the Earnest Money Deposit. A bank guarantee for Rs. 4,69,86,830/- was further delayed and a partial guarantee of only Rs. 2. 35 crores was submitted with an undertaking to furnish a bank guarantee for the remaining amount later. On 28th December 2018 a bank guarantee for Rs. 1. 65 crores was furnished. There was yet a balance about of Rs. 69,86,830/-.
(3.) The Applicant could not commence the advertising displays without a display authority letter and Central Railway said it would issue this only once it had received full security.