IN THE HON’BLE HIGH COURT OF M.P. JABALPUR

Petitioner                  - M.P.S.E.B.

 V/s

Respondent             -  M/S MANGLAM PETROCHEMICALS,  VIDISHA

 GIST OF THE CASE:-

           M/s Manglam Petrochemicals, Vidisha had participated in the   tender for sale of Unserviceable mixed grade lubricating oil and     unserviceable   grease   available   with   various   Generation Stores.    The   Board   vide   order   dated 16.02.94 issued the sale order   on   the firm worth Rs.6,29,181.30 exclusive of Sales Tax @  12%   which   is   payable   extra by the firm.  As per the tendering  conditions,   the   firm   had deposited Rs.5,000/- as earnest money and Rs.63,000/- as Security Deposit.  The total sale value was to  be   deposited   in three installments.  However the firm deposited  Rs.5,10,000/-   against   sale   value   and lifted the sold material  partially.    The   balance   sale   value was not deposited upto the  maximum   period   of payment stipulated in the sale order.  Though  the firm was required to fulfill terms and conditions of the sale  order   but they turned out to be a defaulter.  In accordance with  the   terms   and   conditions   of the sale order, the sale for non- lifted   material   was   cancelled forfeiting the earnest money and  security deposit of the firm.  Aggrieved with this, the firm went  for   Arbitration.    The Arbitrator passed an award dated 13.09.99  while   passing   said award, the Arbitrator held that the firm was  entitled for refund of earnest money Rs.5,000/-, security deposit  Rs.63,000/-,   Ground   Rent   Rs.734.15 and Sales Tax Rs.58,787.88.  Thus total amounting to Rs.1,27,162.03.

          M/s   Manglam   Petrochemicals, Vidisha then moved in the  Court   of   A.D.J. Jabalpur for filing the Arbitration award dated  13.09.99   in   the   Court   and the same be made Rule of the Court.   The   application filed by the firm has been allowed and the award dated 13.09.99 has been made Rule of the Court.

          In     view   of   the   above,   the   Board   has   filed   the  application   on 09.11.2001 in the High Court of M.P. Jabalpur for  setting aside the Arbitration award and the order of the District Court.  The case is under consideration with the High Court.