M/s Reva Industries Ltd Through: Sh Balraj Goel, Managing Director, Plot No 28, Sector25, Faridabad121004, Haryana ............Respondent Date of institution : 22.08.2015 Date of decision : 11.08.2025 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 584192/2016 Union of India Vs M/s Reva Industries Ltd Page No 1/32 (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 33/14. 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/OP1847/09 which was opened on 15.05.2009. The petitioner issued letter of acceptance dated 30.03.2010. The contract was given to the respondent for supply of cranes along with tools and tackles and maintenance spares on 07.06.2010 and thereafter a contract has been executed between the parties. The total value of the cranes was of Rs. 25,09,423/. The contract alongwith terms and conditions was forwarded to the respondent vide letter dt 07.06.2010 and the same was accepted by Sh Somdutt Kaushik on behalf of the respondent on 07.06.2010 vide his endorsment dt 07.06.2010. The respondent was suppose to supply 1 number of crane at New Bongaigaon, Assam which falls under the jurisdiction of CWM/carriage and Wagon Workshop, north Frontier Railways, New Bongaigaon, Assam. (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 clause 1.10 of the contract, the respondent was supposed to deliver the same within 6 months from the date of approval of GA Drawings. The GA drawings were submitted by the respondent on 31.01.2011 and the same was approved by the consignee on 29.06.2011. So the crane was requried to be supplied by 28.12.2011 ARB No 584192/2016 Union of India Vs M/s Reva Industries Ltd Page No 2/32 but the same was supplied on 26.11.2012 and as such there was a delay of approx 11 months in supplying the material and as such the petitioner is within its rights to deduct 10% LD of the total value of the contract as per clause 1002 of GCC of bid documents Part1. (c) As per the petitioner clause 3200 of General Condition of Contract bid documents in partI provided as follows :"In the event of any 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