1. POST CONTRACTUAL PROBLEMS & THEIR SOLUTION

2. PCM – NOT FAILURE Para 6.11.7 -- All amendments to contracts, which have financial implications, should be approved by the CFA in consultation with the IFA. Delivery period refixation/extension Security deposit – waive/forfeit Short closure Exchange variation Price variation Change in payment terms

3. F AILURE OF CONTRACT Contract – A commitment Failure – Non fulfillment of commitment by either party Buyer ?? Seller ??

4. N ON / PART SUPPLY Force majeure Flood, fire, earthquake etc Strike ?? VXL case. Risk and purchase clause SD forfeit Retendering Cash purchase

5. T ECHNICAL ISSUES Change in technical specification – Nalanda crane case. Item passed by quality inspector but couldn’t be used – Pistol spring case. Quality inspectorate’s changing stance – steel rod CQA(Met) case.

6. C ONTD ….. Disposal – Qty not available Import delay – BEL / ROE case. Company not existing – New Haven balls case. Manipulation by supplier – Receiver Pistol case. Portion of work done by buyer – AK-630 Drum case.

7. L EGAL ISSUES Arbitration - If a dispute arises between the Purchaser and the Supplier and it does not get resolved through mutual discussions, the parties may agree for arbitration. Indian Arbitration and Conciliation Act, 1996. Other legal issue not directly related to case – R K Machine Tool case.

8. THANK YOU