LAWS(BOM)-2019-12-115

BULLS EYE MEDIA PVT. LTD. Vs. CENTRAL RAILWAY

Decided On December 11, 2019
Bulls Eye Media Pvt. Ltd. Appellant
V/S
CENTRAL RAILWAY Respondents

JUDGEMENT

(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.