Research › Search › Judgment

High Court of Jammu and Kashmir · body

2025 DAILYLAW 13285 (JK)

M/S CAPITAL ELECTECH PRIVATE LIMITED v. UNION TERRITORY OF J AND K AND ORS. (POWER DEVELOPMENT / KPDCL)

Arb P/23/2024 · 2025-10-17

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

Sr. No.11 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR (Through Virtual Mode) Arb P No.24/2024 Date of Pronouncement: 17.10.2025 Uploaded on: 29.10.2025 M/s Capital Electech Private Limited …Petitioner(s)/Appellants. Through: Mr. Pranav Kohli, Sr. Advocate, with Mr. Farhan Mirza, Advocate. Vs. Union Territory of J and K and others. ….Respondent(s) Through: Mr. Faheem Nissar Shah, GA CORAM: HON’BLE THE CHIEF JUSTICE O R D E R 1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator. 2. The petitioner being a Certified registered Company is engaged in the business of the details of engineering and installation, testing and commissioning of electrical project, participated in the bidding process initiated by the respondents vide e-NIT bearing no.CE/P/KPDCL/13 of 2021-22 dated 07.09.2021 for <Replacement of Barbed Wire and Wooden Poles in District Bandipora under Centrally Sponsored Flagship Scheme DDUGJY (NEW)=. Post evaluation of the technical and financial bids, the petitioner was declared to be the successful bidder. Accordingly, letter of intent dated October 13, 2021 was issued in favour of the petitioner for contract price of Rs.10,05,61,582/- and an agreement dated was executed between the parties on October 29, 2021. 3. It is stated that the petitioner completed the awarded work before the stipulated date of completion as per the tender specifications to the satisfaction of KPDCL. Further, it is submitted that WAPCOS Ltd. (a Government of India undertaking), Ministry of Jal Shakti vide its letter dated April 25, 2022 recommended closure of DDUGJY (New) depicted LOA as Rs.10,05,61,582/- and closure cost as Rs.1,35,25,672/- for District Bandipora. It is urged that from September 22, 2022 till March 23, 2023, series of requests were made for release of the pending bills but they yielded no result. Accordingly, the petitioner in terms of notice June 16, 2023, invoked the arbitration clause of the contract and in response thereto, the respondents refused the same. Hence, the petition at hand. 4. Pursuant to the notice issued, the respondents had caused appearance and filed response. The respondents in their reply, have, inter alia, submitted that since no dispute arises between the parties, therefore, the question of referring the matter for arbitration does not arise. It is further submitted that all due payments stand cleared and delay in payments due to unavailability of funds does not constitute a dispute. It is further urged that despite curtailed scope of the project, the petitioner was unable to complete the project. 5. The existence of the arbitration clause, as aforesaid, and its invocation by the petitioner vide notice dated June 16, 2023, is not disputed. 6. Although, as indicated earlier, the respondents have filed response to the petition but during the course of hearing, learned counsel for the respondents, as always, fairly submits that let an arbitrator be appointed. But since the claim that is sought to be made by the petitioner is vehemently disputed/ denied, it is submitted that respondents be granted liberty to raise all possible pleas/ objections before the arbitral tribunal/ arbitrator in this regard. 7. In the given facts and circumstances, coupled with statement made at the Bar by learned counsel for the respondent, the petition is allowed. Accordingly, with consent of learned counsel for the parties, Mr. Justice M. M. Kumar (Former Chief Justice of Jammu & Kashmir and Ladakh), residing at D163, Lower Ground Floor, Defence Colony, New Delhi- 110024, Mobile No.9888824752, is appointed as the sole arbitrator. Who shall proceed with the matter in accordance with the provisions of the Act. And to make an award within the time provided in the Act itself after charging the prescribed fee along with incidental expenses to be shared by the parties. The respondent shall be at liberty to raise all the objections as regards the subject matter before the learned Arbitrator. 8. Registry to send a copy of this order to the learned arbitrator. (ARUN PALLI) CHIEF JUSTICE Srinagar 17.10.2025 Abdul Qayoom, Secy. Abdul Qayoom Lone I attest to the accuracy and authenticity of this document 28.10.2025 20:04