UNION OF INDIA Vs. M/S. MOHANLAL ROONGTA

JUDGEMENT

(1.) This is an application by Union of India, more particularly the Eastern Railway to set aside an arbitral award dated 2nd June, 2006 made and published by a sole arbitrator, under the Arbitration and Conciliation Act, 1996.

(2.) A very nice point of law is involved. It is also very short.

(3.) The petitioner railways refused to make payment for the supply of 6175 sq.m. (2144 in number) of Wipcheck Resin Impregnated floor board for EMU Coaches with chequered design on both surfaces, made by the respondent, under a purchase order dated 7th July, 1999. The respondent was required to commence supply within 30 to 35 days from the date of receipt of the purchase order. The supply was to be completed within three months i.e. by 17th Nov., 1999 extension was granted by the Railways on 12th May, 2000. The goods, according to the railways were rightfully rejected by them.