BHARAT SANCHAR NIGAM LIMITED Vs. OPTEL TELECOMMUNICATION LTD

JUDGEMENT

(1.) The challenge in the present appeal is to an order passed by the II Additional District Judge, Jabalpur on 15.03.2010 whereby an appeal under Section 34 of the Arbitration and Conciliation Act, 1996 (for short "the Act") directed against an Award of an arbitrator dated 02.02.2002, was dismissed.

(2.) The appellant was part of Department of Telecommunication, Government of India before it was incorporated as a Government Company on 15.09.2000. The appellant published a tender for supply of Optical Fibre Cable (for short "the Cable") for the year 1996-97 on 22.03.1996. The lowest rate for supply of cable was 5% higher than the rates of the year 1995-96 which was not finalized and the tender was scrapped. Thereafter, as per the respondent, there was a meeting in Delhi on 09.09.1996 wherein, the appellant considered placement of orders for the Cables at the provisional rates indicated in the Annexure but these rates are going to be reduced marginally due to reduction in the custom duty in respect of cables in the last budget. It is thereafter, an advance purchase order was issued on 20.09.1996 to the respondent which reads as under:-

(3.) In response to such communication, the respondent conveyed its acceptance on 23.09.1996. The said communication reads as under:-