IDEAL INDUSTRIAL EXPLOSIVES LIMITED Vs. COAL INDIA LIMITED

JUDGEMENT

(1.) The first petitioner is a company registered under the Companies Act, 1956 (hereafter the company). The second petitioner is the Managing Director of the company.

(2.) Coal India Limited (hereafter CIL) invited tenders for supply of cartridge, explosives and accessories. The company expressed interest to supply Detonating Fuse 10 gm. (Power Cord-10) (hereafter the said materials). Its bid was accepted resulting in a running contract executed by and between CIL and the company on 28.11.2008, valid for three years.

(3.) The running contract contains a clause titled Price Fall Clause (hereafter the PFC). It reads as follows: