Extracted from the PDF above. The PDF is authoritative.
( 2025:HHC:13809 )
IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA
Arb. Case No.835 of 2024 Decided on: 9th May, 2025 __________________________________________________ Tarkeshwar Shah
....Petitioner
Versus
State of Himachal Pradesh and another
...Respondents. ___________________________________________________ Coram Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice Whether approved for reporting? 1
For the Petitioner: Ms. Srishti Verma, Advocate. For the Respondents: Mr. Rakesh Dhaulta, Additional Advocate General. G.S. Sandhawalia, Chief Justice (Oral)
This application has been filed for appointment of Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short “the Act’). 2. The dispute has arisen out of award/tender dated 14.08.2017 for “Construction of Police Barracks for 40 Nos. NGO,S GD-II at Bn Head Quarters at Junga Tehsli and Distt. Shimla (SH:-C/o building portion providing internal W.S & S.I. development of site, C/o rain harvesting tank & septic etc.”. 1 Whether reporters of Local Papers may be allowed to see the judgment? - 2 -
3. The agreement (Annexure A-1) as such provides under Clause 25 the matter to be referred to arbitration and the invocation was done on 09.12.2022 (Annexure A-2), on the basis of which, the present application has been filed thereafter. 4. Apparently, there was no response to the same by the State. In the reply filed to the present application, a plea had been taken that the work is to be completed by
31.07.2021. The work has not been completed and the extension was also granted. The work has been stopped as sufficient man and machinery was not deployed to accelerate the progress of work and notices were served. The work was then rescinded after imposing compensation @10% of the awarded amount vide letter dated 04.10.2023 and it has been stated that payment to the tune of Rs.1,46,06,769/- has been made against five running bills in addition to the payment of Rs.4,98,710/-. 5. There is also an averment that the petition is also barred by limitation as the cause of action arose before 2020, which apparently is contrary to the record since apparently the notice regarding invocation of arbitration was
- 3 - never replied to by the Department served on 09.12.2022. Even, as per its own case, the work was rescinded on 04.10.2023 itself. 6.
Keeping in view the above, it is apparent that the matter is liable to be referred to arbitration as the parties had agreed as per agreement in question as such for resorting to the said forum out of which now the dispute has arisen. 7. Resultantly, the application is allowed and Hon’ble Mr. Justice Rajiv Sharma, former Judge of this Court, Telephone No. 98167-00002 (R/o House No. 505 (Backside First Floor),Sector 36-B, Chandigarh 160036) is appointed as an Arbitrator to adjudicate 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, as an Arbitrator, shall come into force. 8. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Hon’ble Mr. Justice Rajiv Sharma, former Judge of this Court, shall enter into reference, and shall pass an award in accordance with law. 9. Copy of this order be furnished to the learned counsel for the parties and also be furnished to the learned
- 4 - 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. Accordingly, the application is disposed of alongwith pending miscellaneous application(s), if any. ( G.S. Sandhawalia )
Chief Justice 9th May, 2025
(priti)