BHARAT SANCHAR NIGAM LIMITED Vs. STAR BATTERY LIMITED

JUDGEMENT

(1.) This is an application under Section 34 of the Arbitration and Conciliation Act, 1996. The award dated 19th August, 2013 passed by a former judge of the subordinate judiciary is under challenge.

(2.) A very interesting point is involved. On 21st October, 2008 the petitioner Bharat Sanchar Nigam Limited concluded a contract with the respondent Star Battery Limited. The respondent was to supply 542 items of battery described as SMF VRLA 600 AH to the petitioner at or for the gross consideration including duties and taxes, of Rs. 10,40,23,149.46/-. The delivery schedule was four months from the date of issuance of the purchase order and also according to the monthly delivery date mentioned in the contract document. It was also provided that any extension of supply beyond the scheduled date of delivery would attract clauses 12 and 24 of the bid document.

(3.) Clause 24 is important. The whole determination of the arbitral reference depends on interpretation of this clause. It is set out below: