BHUPINDER PAL MAHAJAN Vs. STATE OF H.P.

JUDGEMENT

(1.) This application is filed under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 (for short, 'the Act') for appointment of an Arbitrator.

(2.) The applicant contends that respondent no.2 has awarded work of 'Construction of Pungh-Kapahi via Patsal road Km.0/0 to 9/300 (SH: C/O F/C 5/7 mtr. wide Km.6/300 to 9/330, R/Wall, CD works with walls 6.00mtr. RCC Slab Culvert parapets C/O Pucca V-Shape Drain and AP/L MT) Under NABARD RIDF-XIX (Agreement No.75 of 2014-2015)" through a letter of award dt. 28/5/2014 with the stipulated time for executing the contract being twelve months. The value of the work awarded was Rs.1,40,99,836.00. According to the applicant there was delay in execution of the work which was not attributable to the applicant. Also the tax regime changed from 1/7/2017 after the enactment of Goods and Services Tax Act, 2017, which according to the applicant hampered the inflow of finances. According to the applicant he made a request on 19/5/2021 for release of the final bill, GST and the royalty, but to no avail. Applicant contends that the work had been prolonged from 11/6/2015 to 30/4/2018, but the final bill had not been prepared till date. The details of the claims alleged to be pending with the respondents are set out in para-4.

(3.) Legal notice was got issued by the applicant being Annexure P-3 dt. 9/12/2021 invoking the arbitration clause, being Clause 25 of the agreement between the parties seeking appointment of Arbitrator under the provisions of the Act. According to the applicant thereafter he was summoned for discussions to explore the possibility of amicable settlement and some claims were settled, but the claim in respect of GST was however not settled and the 2nd respondent rejected the claim of the applicant qua GST on 14/6/2023.