M/S DES RAJ NAGPAL CONTRACTORS PVT. LTD. TH. ASHWANI NAGPAL v. UNION OF INDIA TH. CHIEF ENGINEER, MILITARY ENGINEERING SERVICES, UDHAMPUR AND OTHERS
Arb P/39/2026 · 2026-05-15
body2026
DailyLaw.ai
[ 2026 DAILYLAW 1124 (JK) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 1124 (JK) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
Sr. No.1 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU (Through Virtual Mode)
Arb P No.39/2026
M/s Des Raj Nagpal Contractors Pvt. Ltd. …Petitioner(s). Through: Mr. Dheeraj Sharma, Advocate. Vs. Union of India and others. ….Respondent(s) Through: Mr. Vishal Sharma, DSGI, with Mr. Karan Sharma, CGSC. CORAM:
HON’BLE THE CHIEF JUSTICE
O R D E R 15.05.2026
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 is a company engaged in the business of Military Engineering Services (MES) Contractor and Government Order Suppliers. It is submitted that on acceptance of contract agreement No.CA No.CWE/NGT-27/2022-23 amended as CA No. CWE/NGT-01/2023-24 for the “Provision of Retaining Wall and Allied Infra at Nagrota” for a total contract sum of Rs.1,27,69,255/-, work order No.01 dated 15.05.2023 was issued to the petitioner by the Garrison Engineer Project Nagrota. It is further submitted that during the subsistence of the contract, the petitioner, vide letter dated 18.07.2023 reported grave structural discrepancies regarding the retaining wall and while the petitioner was waiting for resolution of the discrepancies, the respondents arbitrary and unilaterally issued a notice dated April 15, 2024 foreclosing the contract in full under Condition 57 of IAFW-2249, on the ground that work was no longer required by the Government, causing great financial losses to the petitioner. And, subsequently, the respondents proceeded to return the original Performance Security of Rs.3,83,100/- vide letter dated May 31, 2024. In response thereto, the petitioner, vide letter dated June 21, 2024 requested for reconsideration of the decision and subsequent thereto, the petitioner, vide letter dated November 7, 2024, requested for copies of the inventories recorded by the department on April 25, 2024. On failure of the respondents to do the needful, the petitioner, issued a final demand notice dated December 4, 2025 for payment regarding the material lying at the site and other contractual dues. 3.
It is urged that on account of the respondents’ failure to redress the grievances of the petitioner, the petitioner resorted to arbitration Clause 70 of the agreement which provides that all disputes between the parties are to be referred to the sole arbitrator to be appointed by the Engineer-in-Chief Army HQ and, accordingly, the petitioner, vide letter dated March 19, 2026, requested the Chief Engineer, Udhampur Zone, Udhampur, for appointment of an arbitrator within a period of 30 days. However, the respondents failed to appoint an arbitrator in the matter. Hence, the petition at hands seeks appointment of an arbitrator. 4. Heard. Notice. 5. Served with advance copy of the petition, Mr. Vishal Sharma, DSGI, present in Court, accepts notice. Learned counsel for the respondents vehemently disputes/denies the claim that is sought to be made by the petitioner. It is urged that the claim of the petitioner is apparently misconceived and untenable, and thus deserves to be rejected. However, the existence of the arbitration clause, as aforesaid, and its invocation by the petitioner is not disputed. He, accordingly, submits that let an arbitrator be appointed but the respondents be granted liberty to raise all possible pleas in this regard before the arbitrator. 6. Accordingly, in the wake of the position sketched out above and in terms of the statement made by the learned counsel for the respondents, the petition is allowed. And, with consent of learned counsel for the parties, Mr. Sunit Gupta, Retired District and Sessions Judge (Mob. No.9419162400) 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 possible pleas/ 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 15.05.2026 Abdul Qayoom, Secy. Abdul Qayoom Lone I attest to the accuracy and authenticity of this document 18.05.2026 15:39