M/s Reva Industries Ltd Through: Sh Balraj Goel, Managing Director, Plot No 28, Sector25, Faridabad121004, Haryana ............Respondent Date of institution : 03.09.2015 Date of decision : 21.07.2025 JUDGMENT 1. (i) That the petitioner is an organization called COFMOW established under the Ministry of Railways by the Government of India for modernizing Indian Railways workshops and act on behalf of President of India, the controller of stores, Central Organization for Modernization of Workshops, New Delhi, India. ARB No 584151/2016 Union of India Vs M/s Reva Industries Ltd Page No 1/33 (ii) That the present petition is being filed under Section 34 of Arbitration and Conciliation Act 1996 for setting aside the Arbitral award dt 02.07.2015 passed by Sh R P Bhasin, Ld Sole Arbitrator (Retired Disrict & Sessions Judge) in case no 41/14. 2. Brief facts of the case: (a) That the petitioner had invited a tender for procurement of EOT Cranes vide tender bearing no. COFMOW/OP1891 which was opened on 22.12.2009. The petitioner issued acceptance letter dated 27/28.04.2011 to the respondent. The contract was given to the respondent for supply of cranes alongwith tools and tackles and maintenance spares on 10.06.2011 and thereafter a contract has been executed between the parties. The total value of the cranes were of Rs. 34,51,442/. The contract alongwith terms and conditions was forwarded to the respondent vide letter dt 10.06.2011 and the same was accepted by the respondent and as such the contract is having binding effect upon both the parties. The respondent was to supply 2 number of cranes, one at Burdwan Diesel Shed, West Bengal which falls under the jurisdiction of DME(Diesel), Eastern Railway, Burdwan Diesel Shed, West Bengal and the other crane at Ajmer which falls under the jurisdiction of SSE/WRS (Loco), Ajmer, NWR. (b) The respondent was supposed to supply the cranes as per the specification and terms and conditions of the contract. It is stated that, as per an additional special condition of Bid Document for EOT Cranes for reference of tenderers (Bid Document Part II), the respondent was supposed to obtain approval of the GA Drawing within six weeks + grace period of 15 days from the submission of GA Drawings and deliver the material within 6 months from the date ARB No 584151/2016 Union of India Vs M/s Reva Industries Ltd Page No 2/33 of approval of GA Drawings. But the GA drawings were submitted by the respondent for Crane No. 02/03/09 on 11.08.2012, which was to be submitted by 09.07.2012 and as such there was a delay of approximately one month in the submission of GA Drawings. For crane No. 05/03/09 the respondent submitted the GA Drawings on 19.05.2011 and same got approved on 14.12.2011 and as such there was a delay of 5 Months approx. in approval of GA Drawings. As such the period of delay in submission and in approval of the GA Drawing will be counted for the purpose of levy of L.D. Charges @ 1/4 % of the value of the contract for each week of delay subject to a ceiling of 2% of the value of the contract. Accordingly the petitioner is within its rights to deduct 2% LD (Liquidated Damages) from the value of contract as per additional special condition of bid documents for EOT Cranes for reference of tenderer as per bid document partII. The cranes were required to be supplied by 04.05.2013 and 13.05.2012, but the same were supplied on 01.06.2013 and 17.08.2012, respectively and as such, there was a delay of 1 month and 3 months respectively, in supplying the cranes. As such, the petitioner is within its rights to deduct 2% and 6% LD (Liquidated Damages) from the total value of the contract, as per clause 1002 of the General Conditions of Contract of bid documents, part 1. (c) That as per the petition