Baboo Lall Jain, J. - (1.) This is an application made by the Union of India for setting aside the award made and published by Late, C. R. Chaudhury, an ex-officer of the Union of India, being the award dated 5th April, 1991. By the said award the arbitrator awarded a sum of Rs. 8,61,190/- in favour of the respondent and interest thereon at the rate of 18 percent per annum with effect from April 30, 1985 to May 30, 1989 and further interest from April 5, 1991 until the fifth day of immediately proceeding month of the date of effecting payment by the respondent to the claimant.
(2.) The facts of the case may be shortly summarised as follows:- On or about 26th March, 1981, tender enquiry was floated by the petitioner for supply of cast Iron Anchors. On 30th June, 1981, the respondent submitted its tender for supply of Cast Iron Anchors at the rate of Rs. 19.20 per piece with raw material assistance or Rs. 24.00 per piece without raw material assistance. On 30th April, 1982, the Divisional Engineer, Telegraph (S) accepted the offer of the respondent and placed an order being Purchase Order No. L-408 P-82/Anchor/4592 for 80,000 pieces of Cast Iron Anchors at the rate of Rs. 19.20 with raw material assistance. On or about, 29th October, 1982 the total quantity under the contract was increased to 92,000 pieces instead of 80,000 pieces as originally ordered. Between 30th October, 1982 to 7th April. 1983 the respondent supplied the total quantity of 92,000 pieces of Anchors.
(3.) Before commencing delivery the respondent furnished bank guarantee for Rs. 51,800/- and submitted a certificate issued by the 11 National Small Scale Industries Corporation covering Rs. 23,200/- as and by way of security deposit. The petitioner accepted the said security deposit. It is not in dispute that the respondent supplied the entire quantity of 92,000 pieces.;