BATLIBOI LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) M/s Jobs S.p.A and the Union of India entered into a contract for supply etc. of equipment, machines etc. to Rail Coach Factory, Kapurthala (for short RCF). The contract agreement has been placed on record as R-1 found at page 135 of the paper book. The contract has been signed by a representative of Jobs S.p.A and one Mr. R.L.Pawar, Deputy Controller of Stores-V for and on behalf of the President of India on 3.9.2001 duly executed on acceptance of tender No.13Y96940 H0150013. It is thus a contract protected by Article 299 of the Constituition of India. The contract agreement shows the appellant company as an agent of M/s Jobs S.p.A, a foreign company. It has not been disputed before this Court that the appellant is not a party or signatory to the contract agreement and has been named only as an agent by M/s Jobs S.p.A, the foreign company enlisted to accomplish the contract at RCF as experts chosen in the field of activity involved for implementing public purpose in India, to serve the objects of the government contract. The contract has not been signed by M/s Batliboi Limited and is not privy to the contract signed between the RCF and the foreign company.

(2.) The present proceedings arise out of the fresh/amended claim presented by the Union of India-employer before the Arbitrator after the first Arbitrator had voluntarily relinquished his charge as Arbitrator. By the fresh claim, Union of India has mounted the original claim from Rs. 1.40 crores to Rs. 38.12 crores as presented before the new Arbitrator for resolution through alternate dispute settlement by arbitral adjudication. In the fresh claim, the Union of India named/added M/s Jobs S.p.A as a party respondent No.2 through M/s Batliboi Limited although M/s Jobs S.p.A was being represented before the earlier Arbitrator and the new Arbitrator as well in its independent capacity.

(3.) Mr.Naresh Markanda, learned senior counsel appears before this Court for M/s Jobs S.p.A. Submits that a fresh clause was inserted in the claim stating that M/s Jobs S.p.A and M/s Batliboi Limited are both equally liable to pay the alleged loss in the aforesaid claimed amount allegedly suffered by the railway administration.