M/s Reva Industries Ltd Through: Sh Balraj Goel, Managing Director, Plot No 28, Sector25, Faridabad121004, Haryana ............Respondent Date of institution : 19.12.2015 Date of reserving the Judgment : 04.12.2025 Date of decision : 11.12.2025 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 584223/2016 Union of India Vs M/s Reva Industries Ltd Page No 1/34 (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 District & Sessions Judge) in case no 32/14. 2. Brief facts of the case as per the petitioner : (a) That the petitioner had invited a tender for procurement of EOT Cranes vide tender bearing no. COFMOW/OP1828 which was opened on 24.02.2009. The petitioner issued letter of acceptance dated 14.12.2009. The contract was given to the respondent for supply of cranes along with tools and tackles and maintenance spares on 21.07.2010 and thereafter a contract has been executed between the parties. The letter dated 29.07.2010 in the shape of contract which was accepted by Sh Ajeet Gaud, GM Contract on behalf of the respondent vide letter No R_O_13076 Cont No 2734 dated 29.07.2010. The total value of the cranes was of Rs. 4,83,24,237/. The respondent was supposed to supply 11 numbers of cranes. 8 cranes at DLW/Varanasi & 3 cranes at Hubli South Western Railway. (b) That the respondent was supposed to supply the cranes as per the specification and terms and conditions of the contract which was agreed by the respondent and was also binding upon the parties. As per additional special condition of Bid Document for EOT cranes for reference of tenderers bid document Part II the respondent were suppose to approved the GA Drawings within six weeks + grace period of 15 days from submission of GA drawings to deliver the material within 6 months from the date of approval of GA drawings. (c) As per the petitioner clause 3200 of General Condition of Contract bid documents in partI provided as follows :" In the event of any ARB No 584223/2016 Union of India Vs M/s Reva Industries Ltd Page No 2/34 question, dispute or differences arising under the conditions or instructions of tenderer the same was to be referred to sole arbitration to the gazetted railway officer to be appointed by the Chief Administrative Officer of COFMOW, New Delhi, India and no other person could be appointed as the Arbitrator. (d) That the respondent supplied the goods/material as per the contract and raised an invoice and since the contractual obligation were not fulfilled within stipulated time period, the petitioner at the time of clearing the amount towards the invoice, deducted liquidated damages and made payment as per provision of clause 1002 of GCC bid document partI. (e) That the respondent without first raising a dispute or invoking the arbitration clause as per clause 3200 of GCC, the respondent on 03.07.2014 directly approached to Micro and Small Enterprises Facilitation Council of Haryana under Section 18(1) of the MSMED Act, 2006. The facilitation council issued notice dt 16.07.2014 to the petitioner wherein the petitioner was directed to appear before the council on 07.08.2014. Accordingly, the petitioner put appearance before the council on 07.08.2014 and moved an application u/s 18 (3) of MSMED Act 2006 challenging the jurisdiction of the Council and prayed that the matte