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DELHI HIGH COURT
VIBHU BAKHRU
Tamil Nadu Tele-Communication Ltd. – Appellant
Versus
Railtel Corporation of India Ltd. – Respondent
| Table of Content |
|---|
| 1. factual basis of the dispute (Para 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. claims of defects and demand for replacements (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 3. summary of railtel's claims (Para 18) |
| 4. ttl's arguments against the award (Para 20 , 21 , 22) |
| 5. court's affirmation of tribunal's findings (Para 23 , 24) |
JUDGMENT
Vibhu Bakhru, J. The petitioner (hereafter `TTL') has filed the present petition under Section 34 of the Arbitration & Conciliation Act, 1996 (hereafter the `A&C Act') impugning an Arbitral Award dated 03.10.2012 (hereafter the `impugned award') rendered by the Arbitral Tribunal comprising of a Sole Arbitrator.
2. The impugned award was rendered in the context of disputes that had arisen between the parties in connection with the purchase of 559 kms of 24 Fibre Armoured Optical Fibre Cable. TTL is a manufacturer of Optical Fibre Cables (hereafter `OFC') and supplies the said product to various government and non-government agencies in India as well as overseas. It is stated that petitioner uses the Fujikura brand fibre to manufacture the OFC and, has supplied over 3000 kms. of OFC to the Railways since the past decade.
3. The disputes in th
An arbitral award can only be set aside for patent illegality; the court cannot overturn the tribunal's factual findings or reappraise evidence.
The court upheld that a minimum service life of Optical Fibre Cables, guaranteed at 20 years, imposes liability regardless of warranty expiry, reinforcing obligations established in contractual terms....
A party must prove actual losses to validly invoke a Contract Performance Bank Guarantee and cannot use it as a penalty for non-performance.
The Arbitral Tribunal's awards of costs and findings on execution delays were upheld, but the award of pendente lite interest was set aside for being contrary to the governing contractual provisions.
The main legal point established in the judgment is that the decision of the Arbitral Tribunal must be based on evidence and material on record, and the Court will not interfere with the award unless....
The court upheld the principle that the award of interest and costs in arbitration proceedings should be in accordance with the contract and the provisions of the Arbitration and Conciliation Act, 19....
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