TaxTMI 
TaxTMI 
2013 (4) TMI 360
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....y Catering, Hospitality and Hotel Business along with advertising business in the Railways. In November, 2010 the respondent approached the petitioner and expressed its desire to advertise its brand by way of commercial slides, voice by making use of the Live Media Screens installed by the service provider in Shatabdi Express trains, more particularly, train No.12011-12 (New Delhi-Kalka Shatabdi Express), 12012-14 (New Delhi-Amritsar Shatabdi Express Train) and 12003-04 New Delhi-Lucknow Shatabdi Express Train. The parties entered into an MoU dated 3rd November, 2010 and the petitioner submitted the bank guarantee in question for a sum of Rs.50 lac towards securing the advance payment to be received from the respondent. The parties entered ....
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.... from 13th to 18th month and thereafter clearance of all monthly bills from 19th to 24th month from the date of commencement of works. 6. In the meanwhile, as per the payment terms of the contract dated 22nd March, 2011, after the award of permission by the Railways, the petitioner submitted a bank guarantee for Rs.1.30 crores to the respondent vide letter dated 20th December, 2011 and thereafter submitted its invoice for the 1st installment for Rs.1.30 crores dated 29th November, 2011 which was duly acknowledged by the respondent-Company on 12th January, 2012. 7. Thereafter, the petitioner kept on reminding the respondent that even after the bank guarantee was submitted, the invoice of Rs.1.30 crores had not been paid to the petitioner, ....
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....court proceedings in the petition under Section 9 of the Act. Despite of service, there was no response on behalf of the respondent for appointment of an arbitrator, thus, the petitioner has filed the present petition for appointment of sole arbitrator. 9. The main contention of the respondent is that the petitioner has unconditionally exited from the agreement dated 22nd March, 2011 and asked for return of the bank guarantee for an amount of Rs.1.30 crores dated 19th December, 2011. The respondent has, therefore, accepted the demand of the petitioner and returned the bank guarantee in question, thus, there is no live dispute raised by the petitioner. The learned counsel for the respondent has also referred the two letters dated 12th April....
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....ed upon you to return our Bank Guarantee vide no. 93071PEBG110068 of date 20.12.2011. Further we would like to inform you that we are willing to refund the 1st Installment of Rs. 50 Lacs under the agreement dated 22.03.2011 received by us. However, this is subject to the return of our Bank Guarantee for Rs. 130 Lacs (as aforesaid) and Rs. 50 Lacs vide no. 93001PEBG100025 dated 04/11/2011 in favour of Aircel Ltd. We would like to clarify that the 1st installment of Rs. 50 Lacs would be refunded by us only after you have returned our BG of Rs. 130 Lacs. Thereafter the amount of Rs. 50 Lacs will be refunded by DD or Payorder by us in exchange of the Bank Guarantee of Rs. 50 Lacs lying with your office....." 12. It is the admitted position th....