M/S PAVAN METALS REFINERS vs UNION OF INDIA & ANR.

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 28.03.2025 + ARB.P. 1097/2024 M/S PAVAN METALS REFINERS .....Petitioner Through: Mr. Umesh Kumar Shukla, Mr. S. Mukharjee and Mr. Avinash Shukla, Advocates. versus UNION OF INDIA & ANR .....Respondents Through: Ms. Radhika Biswajit Dubey, CGSC for UOI with Mr.Devvrat Yadav, Advocate. CORAM: HON'BLE MR. JUSTICE MANOJ KUMAR OHRI JUDGMENT (ORAL) 1. The instant petition has been preferred under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter, referred to as the „A&C Act‟), seeking constitution of Arbitral Tribunal (hereinafter, referred to as the „AT‟) comprising of a Sole Arbitrator to adjudicate the disputes between the parties. 2. The petitioner firm purchased Scrap Lot No. 100550498 – containing 262.303 Metric Ton of Scarp Bronze Foundry Clinker III C – 1 which was auctioned by Northern Railway, Alambagh, Lucknow (“the department”) on 16.05.2001 for Rs. 19,26,400/-. In this regard, Sale Suspense Note dated 28.05.2001 was issued by the department. The arbitration clause is contained in Clause 2905(a) of Indian Railways Signature Not Verified Digitally Signed ARB.P. 1097/2024 Page 1 of 9 By:GAUTAM ASWAL Signing Date:02.04.2025 15:09:07 Standard Conditions Contract, as revised vide Railway Board‟s letter no. 2018/TF/Civil/Arbitration Policy dated 12.12.2018. 3. It is the petitioner‟s case that the concerned department supplied only 112.300 Metric Ton instead of 262.303 Metric Ton which cost only Rs. 11,66,380/- and hence, an excess amount of INR 7,60,020/- was deposited by the petitioner firm for the purchase. It is submitted that despite various communications by the petitioner seeking refund of the excess amount, no refund has been made till date. The respondent vide letter dated 20.10