Authority: Calcutta High Court, Commercial Division (Vacation Bench)
Order Date: 22 October 2026
Case Overview
- Petition: Surya Alloy Industries Limited filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 challenging the Warrantee Rejection Advice dated 22 Aug 2026 issued by South Eastern Railway Authority.
- Respondents: South Eastern Railway Authority represented by counsel.
- The petition argued that no joint inspection of the supplied materials had been conducted prior to the rejection, violating contractual and statutory requirements.
- The Railway had earlier issued an order (AP‑COM/380/2026) directing a joint inspection in a similar matter, and submitted a server copy of that order during the hearing.
Final Outcome
- The Court set aside and quashed the Warrantee Rejection Advice dated 22 Aug 2026.
- It directed a joint inspection to be carried out by the petitioner’s authorized representative and Railway officers on 25‑27 Nov 2026, commencing at 11:00 AM each day.
- Both parties must cooperate and allow random sampling of the entire quantity in lots during the inspection.
- The Railway Authority must inform the petitioner of the inspection venue by written communication or e‑mail.
- The order clarifies that the quashing is not on the ground of illegal rejection; the Railway may reject the goods after the joint inspection if they are found non‑conforming, and the petitioner may challenge any such rejection per contractual provisions.
Topics: Legal Dispute, Railway Procurement, Arbitration