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2025 DAILYLAW 14399 (JK)

M/S SHAH ELECTRICALS AND MECHANICAL WORKS v. UNION TERRITORY OF J AND K AND ORS. (TOURISM / SKICC)

Arb P/36/2025 · 2025-10-10

body2025

Judgment text

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Sr. No.08 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR Arb P No.36/2025 M/s Shah Electricals and Mechanical Works …Petitioner(s)/Appel lants. Through: Mr. Shah Aashiq Hussain, 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 10.10.2025 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, a registered A-Class Contractor, participated in the bidding process initiated by the respondents vide NIT dated 08.09.2021 and having been declared as a successful bidder, an allotment order dated 16.10.2021 was issued in his favour for “Installation, Testing & Commissioning of 100 KVA Distribution Sub-Station With Servo & LT Network at Hari Parbat Fort at Srinagar”. The case set up by the petitioner is that after allotment of the contract, the work was commenced, however, during the currency of the work, certain objections were raised with regard to non-procurement of No Objection Certificates resulting in stoppage of the work. However, till such time, the petitioner had partially completed the work which include supply, installation, testing and commissioning of 300 Sq mm armoured cable FRLSH amount to Rs.7,40,000/-. Apart from this, the petitioner had also procured 100 KVA Distribution Transformer with bi-metallic terminal connectors EL2, Copper wound for an amount of Rs. 3.00 lacs and 100 KVA Servo Voltage Stabilizer for an amount of Rs. 5,55,555/- However, the respondents failed to receive the supplies by not providing the place for delivery due to objections raised by the authorities. The petitioner repeatedly requested the respondents to procure NOCs from different quarters but to no avail resulting in non-completion of the work. The petitioner, therefore, served a legal notice upon the respondents requesting them to receive the remaining supplies and release the amount of Rs.15,95, 555/- but to no avail. It is urged that Clause 12 of the agreement provides that, in case of any dispute, the decision of the Director SKICC shall be firm and binding on both the parties, however, the said authority cannot act as an arbitrator being a party to the dispute having direct interest in the dispute. In the aforesaid backdrop, a dispute is stated to have arisen between the parties and in order to adjudicate upon the disputes, a notice dated 14.08.2025 is stated to have been issued by the petitioner seeking appointment of an independent arbitrator in the matter. And owing to the failure of the respondents to appoint an arbitrator in the matter, the petitioner has been constrained to approach this Court. Hence, this petition. 3. On asking of the Court, Mr. Faheem Nissar Shah, GA, present in the Court, accepts notice. 4. The existence of the arbitration clause, as aforesaid, and its invocation by the petitioner vide letter dated 14.08.2025, is not disputed. 5. During the course of hearing, learned senior counsel for the respondents pleads no objection in case the petition is allowed. However, it is submitted that the respondents be given liberty to put-forth its objections with regard to the subject matter before the arbitrator. 6. In the given facts and circumstances, coupled with statement made at the Bar by learned counsel for the respondents, the petition is allowed. Accordingly, with consent of learned counsel for the parties, Ms. Masooda Jan, Sr. Advocate, High Court of Jammu & Kashmir and Ladakh, 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 respondents are at liberty to raise all the objections as regards the subject matter before the learned Arbitrator. 7. Registry to send a copy of this order to the learned arbitrator. (ARUN PALLI) CHIEF JUSTICE Srinagar 10.10.2025 Abdul Qayoom, Secy. Abdul Qayoom Lone I attest to the accuracy and authenticity of this document 15.10.2025 17:22