Jindal Rail gets upper hand in wagon supply case; awarded Rs 18 crore
- Country:
- India
An arbitral tribunal has awarded over Rs 18 crore to Jindal Rail Infrastructure Limited (JRIL) in a case pertaining to the supply of wagons to the Railways. The final award was pronounced by sole arbitrator Justice A K Patnaik (retired).
The Railways have committed a breach of contract by purchasing 496 wagons (BOXNHL wagons) from Jindal Rail at Rs 10,80,000 per wagon and is liable to compensate the firm for the loss or damage under Section 73 of the Indian Contract Act 1872, the arbitration tribunal said. The Railways awarded a tender for supply of 1,403 railway wagons by JRIL and entered into the contract on June 12, 2015.
"The respondents (Railways) issued an order for supply of 1,403 wagons and withheld the order for remaining 468 wagons to be released in the second tranche. "On July 31, 2015 the respondents by amendment to the contract stating that if the claimant failed to comply with the condition for release of the second tranche as per contract, the withheld quantity of 468 wagons shall be taken away for redistribution amongst the other successful tenderers having a better performance and more than 100 per cent compliance," the plea said.
The Railways decided to get some wagons from another wagon-maker – Jupiter and awarded a contract of 1,064 wagons to it. On August 23, 2013, JRIL invoked arbitration in accordance with clause 18 (a) of the Indian Railways General Conditions of the contract which formed an integral part of the contract between parties.
By a letter dated September 20, 2016, the Railways sought to nominate the Executive Director, Railway board as sole arbitrator. The Railways, however, refused to give consent for the same and filed arbitration petition before the Delhi High Court.
The High Court by an order dated November 4, 2016, appointed Justice A K Patnaik former judge of Supreme Court as sole arbitrator to adjudicate the disputes between the parties. JRIL was represented by advocate Manoj K Singh and others of Singh & Associates law firm.
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