M/S. Geep Industrial Syndicate Limited vs Union Of India on 16 May, 2001
If the life of the batteries is less than guaranteed period, the respondent are permitted to reduce the cost proportionately. That is what the formula contained in the contract prescribes and that is quite reasonable and valid clause. In other words, for reduced life reduced cost is paid. The Arbitrator, therefore, rightly observed in the award that it is reasonable pre-estimate of loss in the light of various technical tests and formula laid down in Clause 11. I do not find any merit in the objections raised by the petitioner to the award. IA. 2627/98 is accordingly dismissed.