DELHI METRO RAIL CORPORATION LTD vs VOESTALPINE SCHIENEN GMBH, AUSTRIA

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI RESERVED ON – 07.11.2024 % PRONOUNCED ON – 03.02.2025 + O.M.P. (COMM) 38/2019 DELHI METRO RAIL CORPORATION LTD .....Petitioner Through: Mr. Tarun Johri, Mr. Ankur Gupta, Mr. Vishwajeet, Tyagi, Advs. versus VOESTALPINE SCHIENEN GMBH, AUSTRIA .....Respondent Through: Mr. Sanjoy Ghose, Sr. Adv. with Mr. Jeevan Ballav Panda, Mr. Satish Padhi, Mr. Rahul Kaushik, Mr. Rohan Mandal, Advs. CORAM: HON'BLE MR. JUSTICE DINESH KUMAR SHARMA J UDGMEN T DINESH KUMAR SHARMA, J.: PREFACE 1. The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 („Act‟), seeking to set aside the arbitral award dated 19.09.2018. 2. The impugned award was rendered in the context of the disputes arising out of a contract executed between the parties for the supply of 8,000 Metric Tons of Head Hardened Rails (UIC 60, IRS T-12-2009, 1080 Grade HH) required for the Delhi Metro Phase III expansion. O.M.P. (COMM) 38/2019 Page 1 of 29 Signature Not Verified Signature Not Verified Signed By:PALLAVI VERMA Signed By:DINESH KUMAR SHARMA Signing Date:03.02.2025 12:42:24 Signing Date:03.02.2025 12:36:00 FACTUAL MATRIX AS AVERRED IN THE PETITION 3. Briefly stated the factual matrix of the case and the controversy involved in the present case as averred by the Delhi Metro Rail Corporation Ltd. („Petitioner‟) is as follows:- i. Following a competitive bidding process, the petitioner entered into a contract with Voestalpine Schienen GMBH („Respondent‟) vide Letter of Acceptance („LoA‟) dated 21.06.2013 for a total contract value of Euro 7,832,000. ii. The formal agreement was signed on 12.08.2013, and the Respondent furnished a Performance Bank Guarantee („PBG‟) for an amount of Euro 783,200, representing 10% of the contract value, as a