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2024 DAILYLAW 472 (HP)

DEVENDER SHARMA v. STATE OF HP AND ORS

ARB.C/324/2025 · 2026-01-09

Gurmeet Singh Sandhawalia

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Judgment text

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( 2024:HHC:17042 ) 1 IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA Arb. Case No. 324 of 2025 Date of decision: 09.01.2026 ______________________________________________________ Devender Sharma …..Petitioner Versus State of HP & others …Respondents ______________________________________________________ Coram: The Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice. Whether approved for reporting? ______________________________________________________ For the Petitioner: Mr. Rajesh Kumar and Mr. Vinod K. Sharma, Advocates. For the Respondents: Mr. Rupinder Singh Thakur, Additional Advocate General, for respondent No. 1. Mr. Mukul Sood, Advocate, for respondents No. 3 & 4. G.S. Sandhawalia , Chief Justice ( O ral) CMP No. 19/2026. This application has been filed by the petitioner for placing on record a copy of the Contract document on record. The same is allowed subject to just exceptions. ( 2024:HHC:17042 ) 2 Arb. Case No. 324 of 2025 2. Appointment of an Arbitrator is sought under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), on account of the Award letter dated 30.03.2022 (Annexure P-2), regarding the dispute which has arisen for construction of Senior Citizen Club, Community Centre and Children Reading Room adjacent to Sanjauli Reservoir in Ward No. 19 (Sanjauli Chowk) under “Shimla Smart City Mission”. 3. The parties are stated to have entered into an Agreement on 19.04.2022 (Annexure P-3) for the tender amount of Rs. 1,52,67,571/-. 4. As per the Notice dated 24.05.2025 (Annexure 10) served upon the respondents, the work had been initiated by the petitioner in time as per the Award letter and the work upto RCC columns, was completed after cutting, digging, filling, constructing CC retaining wall and plinth beam, but on account of a ‘Devdar’ tree standing on the ( 2024:HHC:17042 ) 3 land/site, the work could not be completed, as the permission to cut the same had not been taken from the competent Authority. Resultantly, the petitioner suffered a huge financial loss under various heads such as loss towards idling of resources; loss sustained towards variation of prices of material and wages to labourers; loss sustained towards additional work done and loss suffered due to struck of resources etc. 5. Hence, the petitioner invoked the arbitration Clause 25 of the Agreement dated 19.04.2022, whereby there was a procedure prescribed for appointment of an Arbitrator. 6. The respondents have filed reply to the petition, wherein it has been mentioned that the petitioner has failed to execute the work within stipulated period of eight months and thus, has violated the terms and conditions of the Award letter dated 30.03.2022 (Annexure P-2). But neither the issue regarding permission of cutting the ‘Devdar’ ( 2024:HHC:17042 ) 4 tree has been redressed in the written statement nor it was pointed out that in the reply dated 12.04.2023, (Annexure P-5) filed by the petitioner to the communication sent to him by the respondents, dated 28.03.202, where the issue regarding the said tree had already been raised. 7. Since, the parties have to resolve the dispute therefore, the present application is allowed by way of arbitration as agreed between them and Mr. Sumeet Raj Sharma, Advocate, who is present in the Court, is appointed as Arbitrator, to resolve the dispute between the parties. After his disclosure in writing is obtained in terms of Section 11(8) of the Act, and only after receipt thereof, his appointment shall, as an Arbitrator, come into force. 8. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Mr. Sumeet Raj Sharma, Advocate, Chamber No. 339, H.P. High Court, shall enter into reference, and shall pass an award, in accordance with law. ( 2024:HHC:17042 ) 5 9. Copy of this order be forwarded to the learned Counsel for the parties as also to the learned Arbitrator. The learned Arbitrator so appointed, shall be entitled to fee as per stipulation contained in 4th Schedule appended to the Arbitration and Conciliation Act, 1996. 10. The application is disposed of accordingly alongwith pending application(s), if any. (G.S. Sandhawalia) Chief Justice. January 09, 2026 (hemlata)