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Army loses 'rajma' supply dispute to Kendriya Bhandar

IndiaTimes Thursday, 4 January 2024
The ministry of defence lost a legal battle to Kendriya Bhandar over deficient supply of kidney beans. The arbitrator directed the Army Purchase Organisation to return the cashed bank guarantee amount of Rs 44.5 lakh to KB with 7.5% interest since 2012. The Supreme Court upheld the arbitral award, stating that there was no ground to upset the concurrent findings of the trial court and the Delhi HC. The dispute arose over the quality of rajma supplied by KB. The APO must prove financial loss suffered due to procuring rajma from the open market.
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