JUDGMENT :

PAMIDIGHANTAM SRI NARASIMHA, J.

1. This is an application under Section 11(6) of the Arbitration and Conciliation Act, 1996¹[Hereinafter referred as ‘the Act’] for the appointment of a Sole Arbitrator by Glock Asia-Pacific Ltd.²[Hereinafter referred as ‘applicant’]

2. Facts: The Ministry of Home Affairs (Procurement Division)³[Hereinafter referred as ‘respondent’.] floated a single party tender on 02.02.2011 for supply of 31,756 Glock Pistols. The bid was confirmed in favour of the applicant and a Tender of Acceptance was issued by the respondent on 31.03.2011. Clause 6⁴[“6. Performance Security Deposit- You will submit performance bond of 10% of value of contract i.e. US$ 13,29,093/- (US dollars thirteen lakh twenty nine thousand and ninety three only) in the shape of bank guarantee in the required Performa in favour of Joint Secretary (Police Modernisation), Ministry of Home affairs, Jaisalmer House, New Delhi within 30 days here of i.e. by 30.04.2011. The Performance guarantee will remain valid till two months after the expiry of warranty period, which will be 18 months from the date of acceptance stores at the consignee location. If necessary, firm on their own will hav