Valmiki J. Mehta, J. - (1.) This petition under Sec. 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act') is filed by the petitioner/objector Bharat Sanchar Nigam Limited impugning the Award passed by the Arbitrator dated 10.7.2007. By the impugned Award, the Arbitrator has allowed the claim petition filed by the respondent no.1 herein in the arbitration proceedings and has awarded in favour of the respondent no.1 a sum of Rs. 1.09 crores alongwith interest @ 12% per annum from 1.4.1997 till payment besides a sum of Rs. 3,46,580/ - towards costs. The amount awarded of Rs. 1.09 crores is the cost of 266 numbers of 6/15 lines of Subscriber Line Concentrators (SLCs) which were manufactured by the respondent no.1 as per the contract awarded to it by the petitioner but which 266 numbers of SLCs were not taken supply of by the petitioner. On the petitioner making the payment of the aforesaid amount to the respondent no.1, respondent no.1 was directed to deliver to the petitioner the goods in question being 266 numbers of 6/15 lines of SLCs. SLCs are basically equipments by which the petitioner can increase the telephone connections for being available to its subscribers.
(2.) The facts of the case can be understood from the following aspects: - "(i) issuance of a Notice Inviting Tender (NIT) dated 28.09.1995 for the supply of SLCs by the respondent no.1; (ii) the bid offered by the respondent no.1 in accordance with the NIT; (iii) after evaluation of the bid (quote) of the respondent no.1, the petitioner/claimant placed an Advance Purchase Order (APO) dated 11.12.1996 for the purchase of the entire quantity of goods as detailed in the said APO on the terms and conditions specified in that document; (iv) unequivocal and unconditional acceptance of the APO by the petitioner/claimant vide Letter dated 23.12.1996; and (v) furnishing of Performance Bank Guarantee dated 21.12.1996 for Rs. 10,64,610/ - (Rupees Ten Lacs Sixty Four Thousand Six Hundred & Ten only) in pursuance of the APO dated 11.12.1996."
(3.) The NIT issued by the petitioner was for supply of two types of SLCs as under: - "(i) Subscriber Line Concentrators - 6/15 lines of 266 nos. @ Rs. 51,792/ - per unit (all inclusive) for a total value of Rs. 1,37,76,672/ - (Rupees One Crore, Thirty Seven Lacs, Seventy Six Thousand, Six Hundred and Seventy Two Only). (ii) Subscriber Line Concentrators - 16/90 lines of 20 nos. @ Rs. 3,75,777/ - per unit (all inclusive) for a total value of Rs. 75,15,540/ - (Rupees Seventy Five Lacs, Fifteen Thousand, Five Hundred and Forty Only).";