Decided on June 12,1997

Bangladesh Telegraph And Telephone Board Appellant
Lithi Enterprises Limited Respondents


A.T.M.AFZAL,CJ. - (1.) This appeal by the defendant- appellant, Bangladesh Telegraph and Telephone Board (BTTB) following leave, is from judgment and order dated 17th January, 1994 passed by a Division Bench of the High Court Division dismissing First Miscellaneous Appeal No. 140 of 1993.
(2.) Facts of the case, briefly, are that, the appellant invited a tender for preparation of computerized telephone and telex bills for Dhaka, Chittagong and other areas of the country. The tender of the respondent company being the lowest was accepted and accordingly, an agreement was executed between the appellant and the respondent on 16-2-1988. Clause 1 of the agreement stipulates that on the basis of data to be submitted by the appellant, the respondent company would prepare 2,000 telephone and 1,000 telex bills on an experimental basis within a period of two months by using the computer of the Atomic Energy Commission and the contract between the parties would come into force for a period of 3 years subject to acceptance of the experimental bills. The respondent company prepared and submitted the experimental bills, but the appellant was not satisfied with the work and refused to accept the same. Ultimately, on 12-1-1989 the appellant cancelled the agreement.
(3.) The respondent invoked the arbitration clause of the agreement being aggrieved by the cancellation of the agreement and asked the appellant to appoint an arbitrator for settlement of the dispute but the appellant did not comply with the request for arbitration. The respondent company then filed an application under section 20 of the Arbitration Act in the First Court of Subordinate Judge. Dhaka being Miscellaneous Case No.78 of 1990. The appellant appeared and contested the Miscellaneous Case contending that the case was not maintainable as the respondent failed to prepare the experimental bills in terms of the agreement within the specified period and the bills having been found unacceptable the agreement stood ineffective as per Clause I and was accordingly cancelled.;

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