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2.0
Guarantee:
Supplies shall be fully guaranteed against any manufacturing defects / poor
workmanship / inferior design or quality etc. for a period of 12 months from the
date of commissioning or 18 months from the date of delivery whichever is
earlier. During this period, seller will arrange to repair / replace any defective part
free of cost or replace complete set if required.
Performance Bank Guarantee issued by any Nationalised Bank for 10% of basic
order value of material supply and valid for above guarantee period shall be
furnished.
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Signature & Seal of Bidder
Page 21 of 24
Delayed Delivery:
Delivery is the essence of purchase order. In case of delay in execution of the order
beyond contractual delivery date as stipulated in the order HPCL at its option can:
either
i)accept the delayed delivery on price reduced by sum equivalent to half percent (1/2%)
of the basic value of goods not delivered per week of delay or part thereof subject to a
maximum of 5% of basic value of order.
or
ii) Cancel the order in part or full and purchase such cancelled quantities from elsewhere
on account at the risk of the seller without prejudice to its right under (i) above in respect
of goods delivered. All costs and expenses incurred by HPCL, if any, resulting from
cancellation of order shall be recovered from the seller.
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6.1 All disputes and differences of whatsoever nature, whether existing or which shall at
any time arise between the parties hereto touching or concerning the agreement, meaning,
operation or effect thereof or to the rights and liabilities of the parties or arising out of or
in relation thereto whether during or after completion of the contract or whether before
after determination, foreclosure, termination or breach of the agreement (other than those
in respect of which the decision of any person is, by the contract, expressed to be final
and binding) shall, after written notice by either party to the agreement to the other of
them and to the Appointing Authority hereinafter mentioned, be referred for adjudication
to the Sole Arbitrator to be appointed as hereinafter provided.
Signature & Seal of Bidder
Page 22 of 24
6.2 The appointing authority shall either himself act as the Sole Arbitrator or nominate some
officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as owner or
HPCL) or a retired officer of any other Government Company in the Oil Sector of the rank of
Ch. Manager & above or any retired officer of the Central Government not below the rank of
a Director, to act as the Sole Arbitrator to adjudicate the disputes and differences between the
parties. The contractor/vendor shall not be entitled to raise any objection to the appointment
of such person as the Sole Arbitrator on the ground that the said person is/was an officer
and/or shareholder of the owner, another Govt. Company or the Central Government or that
he/she has to deal or had dealt with the matter to which the contract relates or that in the
course of his/her duties, he/she has/had expressed views on all or any of the matters in
dispute or difference.
6.3 In the event of the Arbitrator to whom the matter is referred to, does not accept the
appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons
whatsoever, the Appointing Authority aforesaid, shall nominate another person as aforesaid,
to act as the Sole Arbitrator.
6.4 Such another person nominated as the Sole Arbitrator shall be entitled to proceed with the
arbitration from the stage at which it was left by his predecessor. It is expressly agreed
between the parties that no person other than the Appointing Authority or a person nominated
by the Appointing Authority as aforesaid, shall act as an Arbitrator. The failure on the part of
the Appointing Authority to make an appointment on time shall only give rise to a right to a
Contractor to get such an appointment made and not to have any other person appointed as
the Sole Arbitrator.
6.5 The Award of the Sole Arbitrator shall be final and binding on the parties to the
Agreement.
6.6 The work under the Contract shall, however, continue during the Arbitration
proceedings and no payment due or payable to the concerned party shall be withheld
(except to the extent disputed) on account of initiation, commencement or pendency of
such proceedings.
6.7 The Arbitrator may give a composite or separate Award(s) in respect of each dispute
or difference referred to him and may also make interim award(s) if necessary.
6.8 The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally
by the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The
lumpsum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation contracts
and Rs. 60,000/- for engineering contracts and if the sole Arbitrator completes the
arbitration including his award within 5 months of accepting his appointment, he shall be
paid Rs. 10,000/- additionally as bonus. Reasonable actual expenses for stenographer, etc.
will be reimbursed. Fees shall be paid stagewise i.e. 25% on acceptance, 25% on
completion of pleadings/documentation, 25% on completion of arguments and balance on
receipt of award by the parties.
6.9 Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996
Signature & Seal of Bidder
Page 23 of 24
or any statutory modification or re-enactment thereof and the rules made thereunder, shall
apply to the Arbitration proceedings under this Clause.
6.10 The Contract shall be governed by and constructed according to the laws in force in
India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at
Mumbai for all purposes. The Arbitration shall be held at Mumbai and conducted in
English language.
6.11 The Appointing Authority is the Functional Director of Hindustan Petroleum
Corporation Limited.
7.
8. Firm Prices:On placement of order, prices will remain firm till complete execution.
Signature & Seal of Bidder
Page 24 of 24