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IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI
Integrated Service Point Pvt. Ltd. – Appellant
Versus
Tamil Nadu Civil Supplies Corporation Rep. By the Managing Director – Respondent
ORDER :
M. Dhandapani, J.
Assailing the impugned orders passed by the respondent in and by which amount payable to the petitioner has been withheld, the present writ petitions have been filed.
2. It is the case of the petitioner that tenders were floated by the respondent for the supply of 12 grocery items in which the petitioner came out successful and was awarded the tender. As per clause 14 of the Notice Inviting Tender (for short ‘NIT’), the supplier is to comply with the standards prescribed in the annexures to the NIT and also it prescribes the procedure for checking the quality of supply, which requires samples to be drawn in the presence of the suppliers and issuance of analysis report to the supplier.
3. It is the further case of the petitioner that upon acceptance of the tender, as envisaged under the NIT the supplies were made and bills were submitted to the respondents. It is the further averment of the petitioner that though upon supply, the amounts were to be released retaining 20% of the bill value which would be released after reconciliation with the regions, vide the impugned orders, several deductions were made towards recovery by alleging that the items supplied by t
Parties to a contract must seek arbitration as per an existing arbitration clause before approaching the court for disputes arising from contractual obligations.
The principle of estoppel does not apply when defects in supplied goods are latent and discovered post-acceptance; contractual terms must be adhered to in respect of quality.
The court ruled that the respondent's unilateral deductions from payments violated principles of natural justice, requiring adherence to contract clauses and valid justification for any recovery acti....
The court emphasized that an arbitral award must be reasoned and address core contractual issues, with judicial intervention restricted to cases of patent illegality under Section 34 of the Arbitrati....
The act of using delivered goods constitutes acceptance under Section 42 of the Sale of Goods Act, limiting the buyer's right to reject based on subsequent defects.
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