The contract mandated the Railways provide specified advertising space to PPC, introducing a duty to refund unprovided areas and uphold terms allowing equivalent replacements at no additional cost.

JUDGMENT

1. These petitions arise out of Interim Award-I dated 19th May, 2010, Interim Award-II dated 1st November, 2010 and interim Award (III) dated 29th October, 2012, passed by the learned Arbitrator in arbitral proceedings between Pioneer Publicity Corporation Pvt. Ltd. ("PPC" hereinafter), as the claimant and the General Manager, Northern Railway ("the Railways" hereinafter) as the respondent. Of the three Interim Awards, OMP (Comm) 154/2020, by the Railways, assails Interim Award III dated 29th October, 2012. Interim Awards I and II have not been challenged by either party. OMP (Enf) (Comm) 120/2018 by PPC seeks enforcement of all the three Interim arbitral Awards.

Facts

2. Vide Commercial Circular No. 36 of 2006 dated 1st May, 2006, the Railway Board in the Ministry of Railways announced its intention to implement its scheme of awarding sole rights for commercial publicity on nominated divisions of the Railways to individual parties. In pursuance thereof, a notice inviting tender (NIT) was issued by the Railways in December, 2006, inviting tenders for commercial publicity in the Delhi division of the Railways. PPC emerged as the successful bidder. PPC's bid was accepted by the Railways vide letter of acceptance dated 18th May, 2007, which read thus:

"No.7 PUB/TN/Sole Right/DLI/DIV./2007

Date: May 18, 2007

DRM's Office

New Delhi

M/s Pioneer Publicity Corporation

274-CM-I, Office Complex,

Jhandewalan, New Delhi-55

Sub: Acceptance of Sole Commercial Publicity Rights for ent Division for a period of five years.

Ref: Tender dated 22/01/2007

In reference to above, it is to inform you that your offer of Rs.22,85,500/- (Rs.Twenty Two Crore Eighty Five Lacs Eighty Five Thousand Five Hundred only) with an Increase of 100%, 15%, 20% & 25% respectively over the previous year's license fee for Sole Commercial Publicity Rights of entire Delhi Division has been accepted by the competent authority for a period of five years.

Before starting the work, you are required to fulfil the following formalities:

1. Submit a bank draft of Rs.11,00,42,750/- (after adjusting the EMD for Rs.42,50,000/- deposited in the tender) as license fees for first six months in favour of Senior Divisional Finance Manager, Northern Railway New Delhi.

2. Submit FDR of Rs.2,28,58,550/- (10% of bid amount) as Security Deposit in the form of FDR or Irrevocable Bank Guarantee issued by a Scheduled Commercial Bank for a period of two years, within 15 days from issue date of issue of this letter in favour of Sr. Divisional Finance Manager, Northern Railway, New Delhi.

3. Stamp paper of Rs.100/- for execution of agreement.

The above mentioned formalities should be fulfilled within 15 days of issue of this letter.

Sd/-

Sr. Divisional Commercial Manager

New Delhi"

3. As required by Clauses 31 to 33 of Section III of the tender documents, license fee, for the first six months of Rs.11,00,42,750/-, along with security deposit of Rs.2,28,85,500/- was paid, by PPC, to the Railways, on 1st June, 2007. Clause 31 to 33 of the Agreement may be reproduced thus:

"Payment schedule for license fees

31. The licensee will have to pay license fee for a period of five years subject to an enhancement of 10% for second year, 15% for third year, 20% for fourth year & 25% for fifth year over the previous year's licensee fee respectively.

32. The licensee will have to pay the 1st six months' rent in advance after adjusting the earnest money deposit within 15 days of the receipt of the acceptance letter sent by this office.

33. Further payments for subsequent three months