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1. This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (as amended upto date) hereinafter called the 'Act' challenges the award dated 29.05.2020 passed by Ld. Arbitrator Sh. R. P. Bhasin (Retd. District & Sessions Judge), whereby, petitioner was directed to pay to the respondent an amount of Rs. 15,00,000/- plus cost of Rs. 1,57,500/-.

OMP No. 106/20 UOI VS. Surya Telecom Pvt Ltd Page No.1 of 21

2. The facts giving rise to this petition are that in 2012, petitioner had invited tender for supply of Total Containment Vessel (TCV) for clearance of unexploded objects (UXOs). The respondent participated in the process and was declared successful. It was issued the supply order for providing 2 nos. of TCVs and fragmentation box vide letter dated 27.06.2013 for a total value of Rs. 24,11,18,750/-. TCVs were to be imported from Israel and meant for Ministry of Defence, Government of India. Therefore, Custom Duty Exemption Certificate was required to be given by the petitioner to the respondent. The respondent vide letter dated 06.07.2013, giving acknowledgement, sought clarification regarding clause 14b related to Custom Duty. As per the supply order, the goods were to be supplied on or before 31.12.2013. The petitioner vide letter dated 23.07.2013 clarified that the Custom Duty shall be reimbursed and Custom Duty Exemption Certificate is not required. The respondent also requested the petitioner to issue End User Certificate as the same was required by OEM (M/s Karil International, Israel) to be provided to their Government for issuance of export licence to enable it to supply goods to the respondent. The respondent also got prepared performance bank guarantee dated 26.07.2013 for Rs. 41,11,875/- as per the terms of the supply order and submitted with the petitioner on 30.07.2013. The respondent again requested the petitioner to provide CDEC vide letter dated 05.08.2013 and End User Certificate vide letter dated 12.08.2013 because the goods were to be dispatched from USA on 27.11.2013 and scheduled to reach at Mumbai on 20.12.2013. The petitioner then OMP No. 106/20 UOI VS. Surya Telecom Pvt Ltd Page No.2 of 21 provided the End User Certificate on 20.08.2013 but did not provide the CDEC. The respondent sent a reminder dated 05.11.2013 to the petitioner to provide CDEC and also requested the petitioner vide letter dated 13.11.2013 to extend the delivery period till 31.01.2014 without levying any liquidated damage stating that delivery has been delayed because of not providing CDEC by the petitioner. The petitioner finally gave CDEC to the respondent on 27.11.2013, which it received on 01.12.2013. Because of late receipt of CDEC, the goods could not be dispatched from USA on time.