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

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

                                                 V/s

Respondent             -            M/S QUALITY BELTINGS, GWALIOR

GIST OF THE CASE:-

          M/s   Quality   Beltings, Gwalior had participated in the  tender   for   sale of Nylon Conveyor Belt scrap lot No. 69 (i) for  Store   Korba   West.  The quantity of this scrap lot was mentioned as 18.87 Metric Ton in the tender.  However, as per the terms and condition   of the tender, the quantity of lot can be increased or  decreased.    The   Board,   vide   telegram   dated   20.10.1997, well  within   the   validity period, informed the firm for acceptance of their   offer   for   47.45   MT quantity.  The firm vide Fax Message dated   05.11.97,   indicated   that   47.45   MT Nylon Conveyor Belts scrap is not acceptable.  However, plus or minus 10% quantity may  be accepted.   The firm requested to amend the quantity for 18.87  MT   i.e.   the   tendered   quantity.    The   Board   vide order dated 08.12.97 placed the detailed sale order on the firm for the 18.87  MT Nylon Conveyor Belt scrap.

          M/s   Quality Beltings, Gwalior did not deposit the sale  proceeds   within   the   maximum   time period specified in the sale  order   dated 08.12.97.  The firm did not adhere / comply with the  conditions with regard to payment.  Therefore the said sale order  was     cancelled,     forfeiting   security   amount   of   Rs.90,000/-. Aggrieved   with   the   decision   of   the   Board, the firm went for  Arbitration.    As per the terms and conditions of the sale order,  the   C.E.   (Gen.Store),   MPSEB   was   the   sole   Arbitrator.    The  Arbitrator   in   his   award dated 28.11.98 has rejected the relief  sought by the firm.  M/s Quality Beltings moved the case into the  Court   of A.D.J. Jabalpur for setting aside the arbitration award  of   Shri   Mohd.   Faiyaz   Ahmed,   the   Arbitrator   / the then C.E. (Gen.Stores).    The   Hon'ble   Court has set aside the Arbitration  award   and   passed   the   order   in   favour   of   the firm on dated  12.09.2003.    Considering   the   opinion   of   Shri   M.L.   Jaiswal,  Sr.Advocate,   the   Board has filed an appeal in the High Court in December 2003.  The hearing is awaited in the High Court.