2026:HHC:41483 IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA Arb. Case No. 23 of 2026 Decided on : 25.09.2026 M/s Viraksh Contractors …Petitioner Versus Shimla Jal Prabandhan Nigam Limited and another …Respondents Coram The Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice. Whether approved for reporting?1 For the petitioner : Ms. Ayushi Sharma, Advocate, for Mr. Shriyek Sharda, Advocate. For the respondents : Mr. Tejasvi Dogra, Advocate. G.S. Sandhawalia, Chief Justice (Oral ) The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for appointment of an Arbitrator. 2. Vide Advertisement dated 24.08.2018, e-tenders were duly invited, for providing Sewerage Scheme for left out area of Totu in Tehsil and District Shimla, H.P. (SH:- P/L testing of DI pipes of various dia C/o manhole chamber and construction of STP 2.00 MLD including O&M of entire scheme for five years). The work was awarded to the petitioner vide communication dated 16.01.2019 (Annexure P-1). 3. The present dispute arose regarding the issue of handing over the site, which would be clear from notice dated 1Whether reporters of the local papers may be allowed to see the judgment? 2 2026:HHC:41483 13.04.2022 (Annexure P-6), issued for speeding up the work by the respondents to the petitioner. The response had been made on 20.04.2022 (Annexure P-7), as the pending payment had not been cleared and the economic clearances were required. 4. Eventually, official termination was done by the Additional General Manager of Sewerage Division, SJPNL, US Club, Shimla-1 vide letter dated 19.05.2025 (Annexure P-11), which was objected to by the petitioner vide letter dated 21.05.2025 (Annexure P-12) for reconsideration of the decision. Notice dated 06.11.2025 (Annexure P-13) was then served for reimbursing the losses and appointment of Arbitrator by mutual consent in terms of Section 7(4)(b) of the Act. 5. In preliminary submissions of the reply, reference is made to the judgment dated 29.08.2025, passed in CWP No. 9799 of 2025, titled M/s Viraksh Contractors Vs. SJPNL and another (Annexure R-1), regarding the termination of contract and issuance of the fresh e-tender. 6. It is admitted in the reply that as per clause 3 of the Special Conditions of the Contract, there was a mechanism for resolution by way of arbitration and respondent No.1 had no objection, in principle, to the constitution of an independent Arbitral Tribunal, subject to the preliminary objections having been raised. 3 2026:HHC:41483 7. It has also been mentioned that the petitioner had already been paid a sum of Rs.7.76 Crores through 10 running bills, the final bill had been prepared for Rs.11,37,311/-, the security amount had been deducted from the running bills of Rs.23,88,961/- and the total amount now payable is Rs.35,26,272/-. 8. A plea had been taken that the construction of STP was halted on account of objections raised by the residents of Village Bharyal on 17.05.2019 on account of the pendency of the requisite change of land-use permission/forest clearance, which was beyond the immediate control of respondent No.1, as the site had been originally earmarked for a Municipal Solid Waste Management Plant. 9. Keeping in view the above, this Court is of the considered opinion that once the parties had agreed to the mode of settlement by way of arbitration, the present petition deserves to be allowed, by appointing an independent Arbitrator, who will look into the said dispute. 10. Accordingly, the present petition is allowed and Hon’ble Mr. Justice Deepak Gupta, Former Judge of the Hon’ble Supreme Court of India (Mobile No. 98165-33333), 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) 4 2026:HHC:41483 of the Act and only after receipt thereof, his appointment, as an Arbitrator, shall come into force. 11. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Hon’ble Mr. Justice Deepak Gupta, Former Judge-Arbitrator, shall enter into reference, and pass an award in accordance with law. 12. Copy of this order be furnished to the learned counsel for the parties as also 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. 13. It is further directed that the 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 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. 14. Accordingly, the petition is disposed of, so also the pending applications, if any. (G.S. Sandhawalia) Chief Justice September 25, 2026(Shivank Thakur)