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2026 DAILYLAW 19264 (HP)

M/S GARG SONS ESTATE PROMOTERS PVT. LTD. v. STATE OF HP AND ANOTHER

ARB.C/134/2026 · 2026-08-21

Gurmeet Singh Sandhawalia

body2026

Judgment text

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2026:HHC:35763 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA. Arbitration Case No. 134 of 2026 Date of decision: 21.08.2026 M/s Garg Sons Estate Promoters Pvt. Ltd. …Petitioner Versus State of H. P. & Anr. …Respondents Coram The Hon’ble Mr. Justice G. S. Sandhawalia, Chief Justice. Whether approved for reporting? For the Petitioner : Mr. Suneet Goel, Senior Advocate with Mr. Vivek Negi, Advocate. For the Respondents: Mr. Navlesh Verma, Additional Advocate General. G. S. Sandhawalia , Chief Justice (Oral) The present petition has been filed for termination of the mandate of the earlier order and for substitution of the Arbitrator under Sections 14 and 15 of the Arbitration and Conciliation Act, 1996. 2. It is contended by learned counsel for the petitioner that the Arbitrator, namely, Sh. D. S. Dehal, Engineer-in-Chief (Retd.), HPPWD, who was earlier appointed as an Arbitrator, had recused himself from hearing on 24.05.2026 on account of the fact that while being in office as Engineer-in-Chief, he had dealt with the subject matter of the present dispute and had issued one communication dated 19.10.2021 and, thus, he found it inappropriate to continue. 2 2026:HHC:35763 3. Learned counsel for the State is not in a position as such to oppose the appointment of a fresh Arbitrator from the stage where the proceedings have already reached. 4. Accordingly, the present petition is allowed and Mr. Satish Sagar, Chief Engineer (Retd)., R/o Village Phayal, P.O. Dhari, Tehsil & District Shimla, H.P., Near ITBP Camp Tara Devi, Shimla, Mob. No. 98167-09630, is appointed as 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. 5. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Mr. Satish Sagar, Chief Engineer (Retd), shall enter into reference, and shall pass an award in accordance with law. 6. The earlier Arbitrator is directed to send the record to the newly appointed Arbitrator, so that the proceedings can be carried forward from the date, from which the earlier Arbitrator had dealt with it effectively, as the whole purpose is to resolve the dispute at the earliest. It is further directed that the newly appointed Arbitrator after the proceedings are concluded, shall send the record to the Registrar (Judicial) for keeping the same in safe custody, since the challenge is liable to be raised under the provisions of the Arbitration Act to the award in 3 2026:HHC:35763 question and it would be in the interest of justice to preserve the record, whereby the Arbitrator as such has been appointed by this Court. (G. S. Sandhawalia) Chief Justice 21st August, 2026(sanjeev)