UNION OF INDIA Vs. NATASKEE INCORPORATION

JUDGEMENT

(1.) This Arbitration Appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 has been preferred against the order dtd. 25/2/2025 passed by the learned District Judge, Commercial Court, Indore in MJC AV No. 12 of 2025 whereby the learned Court while exercising powers under Sec. 9 of the Arbitration and Conciliation Act, 1996 granted interim relief in favour of the Respondent.

(2.) Appellant No.2 i.e. Divisional Manager, Western Railway, Ratlam had issued a Notice Inviting Tender (NIT) bearing No. EL-2024-2025- 09 dtd. 27/7/2024 of installation of Solar Grid systems at various locations within the Ratlam Railway Division. The Respondent participated in the tendering process and was declared the lowest bidder (L1).

(3.) Consequently, a Letter of Acceptance (LOA) was issued in favour of the Respondent on 29/11/2024. As per the terms of the LOA and the Indian Railways General Conditions of Contract (GCC), 2022, the Respondent was mandatorily required to submit a Performance Guarantee (PG) within 21 days, i.e., on or before 20/12/2024 with a provision for extension up to 60 days i.e. till 27/1/2025 on payment of penal interest.