KHURHSEED AND CO. Vs. CHIEF ENGINEER, PMGSY, SRINAGAR

JUDGEMENT

(1.) Instant application has been filed by the petitioner-contractor seeking a direction against the respondents for release of performance security deposit (performance guarantee) on account of successful completion of the contract and on account of attainment of the purpose for which performance guarantee was submitted by the applicant-contractor in relation to the contract which was subject matter of the arbitration.

(2.) The application has been moved by the applicant-contractor during the pendency of arbitration petitions that have been moved by him as well as by the respondent under Section 34 of the Jammu and Kashmir Arbitration and Conciliation Act, being AA Nos.9900001/2016 and 900002/2016 respectively, challenging the award dated 15.10.2015 passed by the Arbitral Tribunal.

(3.) It appears from the record that the applicant-contractor was allotted a contract relating to the construction of road from Kangan to Naranag under Pradhan Mantri Gram Sadak Yojna (PMGSY). Certain disputes arose between the petitioner-contractor and the employer (State). In terms of order dated 16.04.2012, passed on an application moved by the contractor before this Court, the Chief Engineer was authorized to appoint Arbitrator within three weeks with a further stipulation that the Arbitrator so appointed shall enter upon the reference within two weeks and to conclude the proceedings within three months. Accordingly, the Arbitral Tribunal comprising three Arbitrators entered upon the reference and passed an award on 15.10.2015. The same stands challenged by both the parties i.e. the contractor as well as the employer by way of two separate arbitration petitions, referred to hereinabove.