IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 28.10.2025 Haryana Power General Corporation Limited ...Appellant Vs.

M/S Shree Balaji Industrial Products Limited and another ...Respondents CORAM: HON'BLE MR. JUSTICE ASHWANI KUMAR MISHRA HON'BLE MR. JUSTICE ROHIT KAPOOR Present: Mr. Vishal Garg, Advocate for the appellant.

Mr. S.S. Rangi, Senior Advocate with Mr. Varun Veer Chauhan, Advocate Ms. Aneet Kaur, Advocate for respondent No. 1.

Mr. Akshay Jindal, Senior Advocate with Mr. Yash Vardhan Goyal, Advocate Mr. Vrishank Suri, Advocate Mr. Tushar Kush, Advocate Ms. Bhavya Vats, Advocate for the respondent No.2.

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ASHWANI KUMAR MISHRA , J. (Oral)

1. This appeal arises out of an adjudication made by the Commercial Court, Gurugram, in Arbitration Case No. 92 dated 24.07.2018, whereby, objection filed by the appellant under Section 34 of the Arbitration &

Conciliation Act, 1996 to the Award of the Arbitrator, has been rejected.

2. In order to appreciate the submissions advanced in the present appeal, certain facts would require narration at the outset.

3. Haryana Power General Corporation Limited (hereinafter referred to as ‘the appellant’) floated tender for supply of 990 Metric Tons (hereinafter referred as 'MT') Hi-Chrome grinding media size 30 MM, 40 MM and 50 MM for Ball Tube Mills for its 210 MW Unit-6, 250 MW Unit 7 & 8, at Panipat. In response to the tender so floated by the appellant, three firms submitted their bids. The High Powered Purchase Committee of the appellant decided to place supply order with M/s Balaji Industrial Products Limited (hereinafter referred to as 'BIPL)'. The offer submitted by the respondent contained technical specifications of the material and appended the wear rate calculated for grinding media supplied by it to the appellant.

4. The Notice Inviting Tender (hereinafter referred to as ‘NIT’), contained a clause specifying the maximum wear rate, which read as under:-

"The maximum wear rate of Hi Chrome Grinding Media would be 125 grams per metric ton of coal ground for all type of Indian Coal conditions. In case wear rate of grinding media is more than 125 grams per metric ton of coal ground, the grinding media required above 125 grams per M.T. of coal ground shall be supplied by the supplier at site free of costs".

5. The respondent BIPL in its bid document submitted on 20.06.2009 submitted a counter-proposal in respect of wear rate, which is as under:-

"18. Wear Rate Guarantee We agree for your wear rate guarantee for Balls as per your tender documents Annexure C/4 in toto. Our wear guarantee would valid only if our balls are charged exclusively in a mill as it is very difficult to identify the source of ball and individual performance of balls from each vendor once they are mixed. Our guarantee would be void for those balls which are mixed with balls of other vendors."

6. When the High Powered Tender Committee examined the tender submitted by the respondent, it found departure in the bid of BIPL from the terms of the NIT. This departure was intimated to the respondent vide letter dated 25.06.2009. Clause 12 of this communication in respect of the guarantee/warrantee clause reads as under:-

As per Tender Specification As offered by the firm Deviation

12.Guarantee/Warrantee: Guarantee void if mixed with balls Confirm as per NIT.

As per NIT(Annexure C/IV) of other vendors

7. The objection conveyed by the appellant, aforesaid, was responded by the respondent by stating as under:-

"Para No. 12: Guarantee/Warrantee: Our Guarantee/Warrantee clause No. 18 is very much clear for our products & as such you will find the same in order in the interest of plant/purchase/supplier which is in confirming to N.I.T."

8. Further communication was sent by the respondent in this regard, to the appellant which is reproduced hereinafter:-

"Para No. 12: Guarantee/Warrantee: Though we have cleared the guarantee/warrantee clause in detail of SPC yet we agree to your N.I.T. clause i.e wear date of calculation bas