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1987 DIGILAW 194 (DEL)

CROMPTON GREAVES LIMITED v. UNION OF INDIA

1987-04-28

CHARANJIT TALWAR

body1987
Charanjit Talwar ( 1 ) THIS petition under Section 20 of the Arbitration Act which has been registered as a suit, is filed by M/s Crompton Greaves Ltd. seeking reference of seven disputes to the arbitrator as per the Arbitration Agreement dated 6/9th June, 1979 between the petitioner and the Union of India, respondent herein. ( 2 ) THE arbitration clause in the contract No. W/7-C/see/- LKO, dated the 6/9th June, 1979 is not denied by the respondent. The petitioner has raised the following disputes for reference to the arbitrator: " (I) Is the Union of India entitled to claim any damages from the petitioner in terms of the agreement W/7-C/see/lko dated 6/9-6-1979. (ii) In case issue at (i) being positively answered, what is the reasonable quantum of damage can it exceed the value of the contract. (iii) In case Union of India has exercised its option to claim liquidated damages, can general damages be also claimed of a higher amount. (iv) Was it proper for Union of India to terminate the agreement and levy liquidated damages to the extent of Rs. 90,000. 00. (v) Is there any justification for the Union of India not to release the security deposit of the petitioner. (iv) Is there any justification for rejecting part of the equipment supplied by the petitioner and thus withholding the legitimate duties of the petitioner. (vii) Is the petitioner entitled to interest on the over due amount, if so at what rate and from what date. " ( 3 ) THE respondent in its reply refers to the letter dated the 18th April, 1986 written by the Northern Railway to the petitioner herein, wherein the following two disputes have been raised. That letter is Annexure R-l to the reply by the respondent: (i) Liquidated damages for delay in completion of the work.-Rs. 90,000. 00 (ii) Loss suffered by Railways due to additional amount paid to UPSEB as Low Power Factor surcharge on account of delay/noncomplection of the work. Rs. 32,87,424. 00 The case of the respondent is that these disputes be also referred to the arbitrator. ( 4 ) THE respondent to file copy of the Arbitration Agreement within two weeks and to refer the above disputes between the parties to the arbitrator in terms of Clause 64 oi the General Conditions of Contract (Arbitration Agreement) within two months. The petition stands disposed of. ( 4 ) THE respondent to file copy of the Arbitration Agreement within two weeks and to refer the above disputes between the parties to the arbitrator in terms of Clause 64 oi the General Conditions of Contract (Arbitration Agreement) within two months. The petition stands disposed of. No order as to costs.