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High Court of Jammu and Kashmir · body

2025 DAILYLAW 15054 (JK)

M/S M A CONSTRUCTIONS v. UNION OF INDIA AND ORS. (MINISTRY OF DEFENCE)

Arb P/31/2025 · 2025-10-10

body2025

Judgment text

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Sr. No.04 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR Arb P No.31/2025 M/s M. A. Constructions …Petitioner(s)/Appellants. Through: Mr. Shah Ashiq Hussain, Advocate. Vs. Union of India and others. ….Respondent(s) Through: Mr. Nazir Ahmad Bhat, CGSC. 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 being a registered and enlisted contracting firm participated in the e-tendering process initiated by the respondents for “PROVN OF RING MAINT UNIT (RMU), STABILIZED POWER SUPPLY EQUIPMENT AND ASSOCIATED WORKS AT 1 WING, AF SRINAGAR” and having been declared to be successful bidder was issued an allotment order dated April 10, 2023 followed by work order dated August 21, 2023. The date of commencement of the work was fixed as August 25, 2023 and the date of completion was stipulated as February 20, 2024. It is urged that despite the petitioner being fully ready to execute the work could not execute the work owing to the non-approval of essential construction materials, belated approval of manufacturer’s drawings and withholding of requisite clearance and site permissions being the pre- conditions for commencement of the work. It is urged that several requests were made for extension of time. However, the respondents instead of extending the time illegally cancelled the allotment vide order dated November 6, 2024 and thereafter issued impugned communication dated November 11, 2024, raising a Measure Record Order to the tune of Rs.3,14,034/-. It is asserted that the action of the respondents being illegal and arbitrary, the petitioner vide communication dated July 21, 2025 invoked the arbitration Clause 70 of the General Conditions of Contract and requested the respondent no.3 (Chief Engineer, Udhampur Zone), for appointment of an arbitrator. And since the respondent no.3 having failed to consider the request of the petitioner, the petitioner has approached this Court in terms of Section 11(6) of the Arbitration and Conciliation Act. Hence, the petition at hand. 3. Pursuant to the notice issued by this Court, the respondents had caused appearance and filed their response. The respondents in their reply, have, inter alia, submitted that the subject contract was allotted to the petitioner, but it failed to execute the work and reasons putforth by the petitioner for delay in execution of the contract are devoid of any merit. It is submitted that despite providing enough time to the petitioner to execute the work on spot, it failed to start the work and accordingly, the respondents were impelled to cancel the contract and the respondents have rightly levied the compensation upon the petitioner in terms of Condition 50 of IAFW-2249 (General Conditions of Contract). It is further urged that the request of the petitioner for appointment of an arbitrator was devoid of any merit and the same was not, therefore, considered. 4. The existence of the arbitration clause, as aforesaid, and its invocation by the petitioner vide notice dated July 21, 2025, is not disputed. 5. Although, as indicated earlier, the respondents have filed response to the petition but during the course of hearing, learned counsel for the respondents pleads no objection in case the petition is allowed. 6. 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. Shafqat Nazir, Advocate (Cell No.9797886362), 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. 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 14.10.2025 10:38