JUDGMENT :

Chandra Dhari Singh, J.

FACTUAL MATRIX

1. The instant petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “The Act, 1996”) has been filed on behalf of petitioner seeking the following reliefs:—

“a) set aside the impugned award dated 1.7.2019 passed by Shri. Rakesh Kumar Agarwal, the Ld. Sole Arbitrator in the arbitration matter between M/s. Vista Information Systems Private Ltd. and Telecommunications Consultant India Ltd;

b) summon the record of the Arbitral proceedings of Arbitration between M/s. Vista Information Systems Private Ltd. and M/s. Telecommunications Consultants India Ltd. in which the impugned award has been passed;

c) Award the cost of these proceedings in favour of the petitioner and against the respondent;

d) Pass any other or further order(s) and/or directions as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case in favour of the petitioner and against the respondent.”

2. The brief facts of the case are that the petitioner is a 100% owned Government of India enterprise with its principal office at TCIL Bhawan, Greater Kailash-1, New Delhi - 110048, India (“TCIL”). The respondent is a company incorporated under the Companies Act, 1956 with its registered office at M-23, Hemkunt Chambers, 89 Nehru Place, New Delhi - 110019, India (“Vista”).

3. One Nortel Networks Singapore PTE. Ltd. entered into a Supply Contract dated 28th September, 2004 (“Supply Contract”) with TCIL concerning the Supply of Hardware and Software for Mobile Train Radio Communication System on Howrah-Pradhankunta Section of Eastern Railway (the “ER Network”), on the terms and conditions contained therein. Further another contract dated 30th September, 2004 for the Services (“Services Contract”) was entered into between Nortel Networks (India) Private Limited and TCIL for providing services in connection with its deployment of Mobile Train Radio Communication System on Howrah-Pradhankunta Section of Eastern Railway, on the terms and conditions contained therein.

4. As per Clause 14 of the Supply Contract, the supplier shall furnish a Performance Bank Guarantee to the buyer for a sum equaling 5% of the contract value of the equipment. It is further provided in Clause 14 of the Supply Contract that on expiry of the warranty period and the issue of certificates for Final Acceptance, the security deposit will be returned/refunded or the Bank Guarantee be released to the supplier after adjustment of any dues payable by the supplier to the buyer.

5. Subsequent to the completion of the maintenance supervision period and the warranty period, the Final Acceptance Certificate was issued by the Eastern Railways on 12th March, 2009. However, certain obligations of the Nortel entities remained under the contract which included (i) entering into an Annual Maintenance Contract (“AMC Contract”) with TCIL for a period of three years and (ii) to supply and guarantee the availability of maintenance spare parts for the ER Network. When the ERP system “FACT” was discontinued in 2011 to a new accounting system, no data with regard to the contracts in question was transferred.

6. Vide letter dated 23rd August, 2017, the arbitration clause was invoked by the respondent.

7. In the meanwhile, in January 2009, the parent company of Nortel India and Nortel Singapore, Nortel Networks Corporations (a Canadian Corporation) together with Nortel Networks Ltd., Nortel Networks Inc., filed voluntary petitions for insolvency protection in various jurisdictions. In the light of this, Nortel India entered into di