Jammu & Kashmir High Court
M/S. Sharma Construction Company vs Union Of India And Others on 27 August, 2021
Author: Chief Justice
Bench: Chief Justice
Sr. No.8
HIGH COURT OF JAMMU &KASHMIR AND LADAKH
AT JAMMU
CJ Court
Through virtual Mode
Case: Arbitration Petition(Arb. P) No.27of 2020
M/s. Sharma Construction Company ...Petitioner(s)
Through: Sh. R.K.Gupta, Sr. Advocate
with Sh.Udhay Bhaskar, Advocate
v/s
Union of India and others .... Respondent(s)
Through: Sh. Vishal Sharma, ASGI
CORAM: HON'BLE THE CHIEF JUSTICE
ORDER
1. Heard Sh. R. K. Gupta, senior counsel assisted by Sh. Udhay Bhaskar, learned counsel for the petitioner and Sh. Vishal Sharma, Additional Solicitor General of India for the respondents.
2. The Petitioner has moved this petition under section 11(6) of the Arbitration and Conciliation Act 1996 for the reference of the disputes in relation to Work Order No. 1(P) dated 11.09.2017 and the contract thereon to an independent arbitrator.
3. The respondent No. 3, Chief Engineer, Udhampur Zone invited tenders for the construction of 4500 mtrs of RCC boundary wall at Pallanwala. The petitioner also applied and his 2 Arb. P No. 27 of 2020 tender was accepted, he was issued the Work Order as aforesaid and a contract was also executed.
4. In relation to the said contract, certain disputes arouse between the parties with regard to not providing the complete site for carrying out the contract and with regard to liability of additional 6% GST inasmuch as it is alleged that GST was reduced from 18% to 12%.
5. In connection with the above dispute, the petitioner in accordance with the arbitration clause 70 of the IAFW 2249 of the General Conditions of the Contract vide letter dated 15-07- 2020 called upon the respondents to refer the matter to the sole arbitrator.
6. It is alleged that in response to the aforesaid demand nothing was done and, therefore, the petitioner was left with no alternative but to move the present petition.
7. Learned Counsel for the parties accept that the contract contains arbitration clause but the arbitrator has to be a person with civil engineering background.
8. Sh. Vishal Sharma contends that the dispute primarily centers around the liability to pay GST and since it is a statutory liability, it rests upon the petitioner.
9. In fact, there is no opposition to the appointment of an arbitrator but for the formal objection as above.
10. In the facts and circumstances of the case, I am of the view that as the contract contains an arbitration clause which has been invoked by the petitioner, the alleged disputes are 3 Arb. P No. 27 of 2020 referable to arbitration subject to all grounds of objections available to the parties, accordingly, Mr Satish Chander, Retd. Additional Director General Contracts, H.No. 89, Lane No.4, Greater Kailash, Jammu (M: 9417256367) is appointed as the sole arbitrator from the names of the arbitrators suggested by the parties, who shall proceed in the matter in accordance with the provisions of the Act to make the award within the time provided in the Act itself after charging the prescribed fee along with incidental expenses to be shared by the parties.
11. The Arbitration petition stands disposed of.
PANKAJ MITHAL CHIEF JUSTICE Jammu 27.08.2021 Tilak.
Whether the order is speaking? Yes/No Whether the order is reportable? Yes/No