M/S VIJAY KAPOOR CONSTRUCTION v. STATE OF HP AND ORS
ARB.C/58/2025 · 2025-08-08
Gurmeet Singh Sandhawalia
body2025
DailyLaw.ai
[ 2025 DAILYLAW 6034 (HP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 6034 (HP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
( 2025:HHC:27070 ) IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Arb. Case No.58 of 2025
Date of Decision:- 08.08.2025
M/s Vijay Kapoor Construction ....Petitioner Versus State of H.P. and others ....Respondents Coram The Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice Whether approved for reporting?1 For the Petitioner : Mr. Tarunjeet Singh Bhogal and Ms. Srishti Verma, Advocates. For the Respondents : Mr. Arsh Rattan, Deputy Advocate General, for the respondents- State. G.S. Sandhawalia, Chief Justice
(Oral). The present petition has been filed for appointment of an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1966. 2. The claim is based upon on account of the work of
“C/o Indoor Stadium at Reckong Peo in District Kinnaur, Himachal Pradesh (SH: Site Development, Building Portion, Civil Work, W.S & S.I and Rain Water Harvesting System)”. The said work was awarded on 05.07.2014 and the work was stipulated to be completed within a period of 2 years, but the complete hindrance-free site for the work was made available to the 1 Whether reporters of Local Papers may be allowed to see the judgment? 2 applicant/petitioner in August, 2021 i.e. after a lapse of more than 7 years after the award of the work. The applicant/petitioner has executed the work amounting to the tune of Rs.6,81,00,000/- against the awarded amount of Rs.3,39,64,524/- and the Management meetings as such were held on 17.02.2024, but no efforts were made to resolve the matter and to make the payment to the applicant/petitioner. The work executed by the applicant/petitioner to the extent of Rs.35,00,000/- remained unpaid and work amounting to Rs.7,00,000/- remained unmeasured at the site. 3. Counsel for the applicant/petitioner has referred to Clause 25 of the contract between the parties and the notice dated 14.06.2024 (Annexure P-2) and it is pointed out that the claim is of Rs.4,93,10,873/-. On account of no response from the respondents, the present petition has been filed. 4. The plea taken as such by the respondent is that the disputes are being raised beyond three years of completion and even beyond the extended period of time, therefore, the claim being time barred cannot be entertained. The drawings are stated to have been received by the petitioner on 10.08.2015 and the site was stated to be free from hindrances and the execution of the works was never hindered.
It has however been admitted
3 that the work to the tune of Rs.6,99,09,557/- has been executed and recorded in the measurement books by the respondents out of which an amount of Rs.6,60,50,560/- has already been paid to the applicant/petitioner. It has also been admitted that the amount of Rs.38,58,897/- remains to be paid to the applicant/petitioner. It is thus, stated that on account of the negligence of the applicant/petitioner, the cost of work has been doubled. 5. Keeping in view the above, this Court is of the considered view, that the matter is liable to be referred to arbitration for settlement of the claims as such inter-se the parties, as per the terms of agreement. 6. Accordingly, the application is allowed and Hon’ble Mr. Justice Rajiv Narain Raina, former Judge, Punjab & Haryana High Court, House No.E/8-03 (GF), DLF-The Valley (Near Amravati Enclave), Pinjore-Kalka Urban Complex, Sector-3, Panchkula-134107 (Contact No.7837049207 & 0173-3411833) (e-mail Id: rajivraina58@gmail.com) 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. 4
7. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Hon’ble Mr. Justice Rajiv Narain Raina, former Judge, Punjab & Haryana High Court, shall enter into reference, and shall pass an award in accordance with law. 8. Copy of this order be furnished to the learned counsel for the parties and also be furnished 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. 9. Accordingly, the application is disposed off alongwith pending miscellaneous application(s), if any. (G.S. Sandhawalia)
Chief Justice 8th August, 2025
(munish thakur)