JUDGMENT

(Prayer: Original Side Appeal filed under Order 36 Rule 1 of the Original side Rules read with Section 37 of Arbitration and Conciliation Act, 1996 against the order and decree dated 19.11.2010 made in O.P.No.727 of 2003.)

P.B. Balaji, J.

1. This is a peculiar case, where the Electricity Department viz., the TANGEDCO, the appellant herein suffered a “shock” as a result of nebulous contractual obligations and counter obligations.

2. To put the claim of the appellant/electricity board in a nut shell, the appellant, for the purpose of installing a power house at Parson''s Valley unit, Kundha Ultimate Stage Hydro Electric Project in the State of Tamil Nadu, invited tenders for design, manufacture, supply, erection and commissioning of a 30 M.W generation unit, together with associated accessories.

3. The 1st respondent herein was one amongst many persons who offered bids. As the 1st respondent''s bid was the lowest, the appellant issued a letter of acceptance on 24.02.1995, followed by the Purchase Order on 28.03.1995.

4. The disputes between the parties arose on primarily one issue as to whether who was liable to pay/meet the difference in Foreign Exchange rate-U.S. $ vis-a-vis Ind