UNION OF INDIA Vs. GEE KAY ENGINEERING INDUSTRIES

JUDGEMENT

(1.) The Petitioner has challenged the impugned interim Award dated 04.01.2020 passed by the sole Arbitrator, the operative part of which is as under :

(2.) Briefly stated the case of the respondent-firm before the learned Arbitrator was that being a supplier of defence equipments to the Indian Army and Para Military Forces, it was given a contract for supply of 6250 pairs of Boot Anti Mine Infantry (hereinafter referred to as 'BAMI') in terms of Order No. 21023/Supply order/110 (C/ACSFO/45) dated 01.03.2018. As per clause Part IV i.e Special conditions of supply order of the Tender Agreement, the appellant herein had to make the payment to the respondent-firm instantly. For facility of reference, the said clause is reproduced hereunder:

(3.) It was further alleged by the respondent-firm that in the instant case, no payment has been made to the said firm till date. The respondent-firm had taken credit limit from the Axis Bank for the aforesaid supply and because of the delay in the payment, it has suffered a grave financial hardship. That apart, the Bank aforesaid was ready to initiate action for declaring the respondent- firm as NPA under the Scrutinization Act. The respondent-firm is stated to be paying huge interest to the Bank for non payment of loan amount and has paid a total amount of Rs.1,94,00,000/- as interest from July 2018 to September, 2019. The claimant has also pledged his property with the Bank.