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Case Summary:

The case deals with a dispute between two companies, SAINT and ANGEL
regarding a $ 50 million DDP contract. On 1/1/13, SAINT signed the contract with
ANGEL to deliver 10 VIRUS-2014 helicopters (fitted with SAINTs avionic softwareAIDS) to M/s LORDs in Kabul Airport, Afghanistan. The delivery was to be made
anytime between 31/3/13 to 31/5/13. Time was the essence of the contract.
Conditions and Warranties in the contract:
Delivery has to be done in one lot.
ANGEL would fit AIDS to VIRUS before delivery.
Failure to deliver within stipulated time would attract an LD @ 5% from
If the delivery isnt effected by 31/7/13, the contract would be cancelled and
ANGEL would have to repay whatever money they received from SAINT with
12% pa interest.
Only delivery details could be discussed between ANGEL and LORDs.
SAINT will supply AIDS to ANGEL within 15 days of request. Any damage, loss,
or passing of information regarding AIDS by ANGEL would be considered as a
breach of contract and would be subjected to a penalty of $ 20 million,
cancellation of contract and recovery of dues.
SAINT will pay ANGEL $ 30 million in advance by 15/1/13 by RTGS transfer to
procure GERMS from USA. Also, any extra cost for procuring GERMS (above $
1 million) would be reimbursed to ANGEL by SAINT.
SAINT will pay the remaining $ 20 million on completion of delivery of VIRUS
fitted with AIDS to Kabul Airport.
LORDS was not a part of the arbitration proceedings.
Events leading to the dispute:
SAINT doesnt pay $ 30 million by 15/1/2013. After multiple reminders they
paid on 25/3/3 but through cheque and not RTGS, which caused additional
delay in getting the money.
ANGEL incurs $ 10 million for procuring GERMS. Additional $ 2 million had to
be paid to customs as SAINT had undervalued the AIDS package.
ANGEL was ready to deliver 10 VIRUS by 31/3/13. LORDS was to accept
delivery before August end as their installations werent ready.
On 19/4/13, ANGEL delivers 5 VIRUS without AIDS to another company called
ESA (Loss of $ 1 million incurred for selling in distress), but the mistakenly
send EAS an AIDS operational manual.
ANGEL starts manufacturing 5 VIRUS for LORDS which were expected to be
ready by July end.
On 15/5/13, SAINT declared that LORDS was expecting delivery before
On 26/5/13, ANGEL sends 5 VIRUS with 10 AID packages to LORDS. AIDS not
fitted into the VIRUS in ANGELs premises and not sent as one unit, hence this
is a violation of contract.
Kabuls customs demand $ 0.5 million as duty, LORDS refuses to take
One AIDS package get damaged and another goes missing while in customs.
On 31/7/13, LORDS takes delivery of 8 units under protest and reserve.

ANGEL demands $ 27.85 million from SAINT including the various additional
costs incurred.
SAINT demands $ 52.5 million from ANGEL for violating the confidentiality
On 15/8/13, ANGEL invokes the clause for arbitration of dispute.