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In a recent case which implicates Tata Motors and DTC on the issue which emerged out of the tenders solicited by the DTC in the year 2008 for providing CNG-propelled AC and non-AC buses to be employed during the Commonwealth Games. In the meanwhile, the Delhi High Court has instructed the Delhi Transport Corporation (DTC) to submit Rs. 100 crore with the registry of the court subsequent to the action of the Tata Motors Limited (TML) as they moved a supplication for implementation of an arbitral award very close to Rs. 326 crore. This direction came from Justice Vibhu Bakhru and also asked to deposit the amount in a period of five weeks. In compliance with the contract the purview of work comprised of design, manufacture, supply, testing, and commissioning of the buses.
TML was at the top of the ladder thriving as a successful bidder and thereby undertaking the contract with the DTC for providing 650 AC and 975 non-AC buses. The reason behind the discord between the parties as pronounced by the TML was that DTC failed to observe its recommendations and manifesto with reference to the specifications to be appertain, which strained to a great degree the accomplishment of the contract and following that DTC imposed liquidated damages upon TML for purportedly delaying in supply of buses. Thereafter, TML instigated the arbitration proceedings against DTC in the wake of dereliction of contract, detains and improper and unlawful foisting of liquidated damages and also strived for compensation for loss and damage spawned to it due to persistent relocations of the goalpost and expanding the ambit of the work which proceeded an upswing in prices of the buses.
On the contrary, the DTC asserted that there was substantial set back on part of TML on the culmination of spare parts, catalogs and price list and further contended that TML was contemplating its own time in fixing up the buses. After hearing the claims of both the parties, an arbitral award was decided by Justice Shah and Justice Chopra and also granted the affirmation of TML and awarded Rs. 326 crores (approx.) under several reliefs asserted by TML such as indemnification with regard to illicit recovered liquidated damages towards the delivery of the buses.
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