K.K. GUPTA AND CONSTRUCTION ENGINEERS (JV) AND UNION OF INDIA AND ORS. Vs. UNION OF INDIA AND ORS. AND M/S. K.K. GUPTA & CONSTRUCTIONS ENGINEERS

JUDGEMENT

(1.) M /s. K.K. Gupta and Construction Engineers (JV), for short 'the Contractor', filed a Petition under Section 9 of the Jammu and Kashmir Arbitration and Conciliation Act, 1997 with Principal District Judge, Jammu, seeking Restraint directions against Union of India, Deputy Chief Engineer, Chief Engineer and Chief Administrative Officer, Construction, Northern Railways, New Delhi not to act on Chief Engineer/C/NW's Communication No. 74 -W/1/1/349/WA/JAT/D/Pt.I dated 14.3.2008 giving it seven day's Notice, in terms of Clause 62 of the General Conditions of Contract, to make good the progress in respect of Contract: Construction of Bridge No. 81 (25x26.20M) (Over all) spans over river UJH consisting of PSC girders with well/open foundations with RCC abutments and piers including earthwork in embankment/cutting and blanketing on approaches and other allied works between Km. 34.110 to Km. 35.604 between Budhi -Chhan Arorian in connection with doubling JUC -PTK -JAT Section, And pass orders adverse to its interests including termination of work at its risk and cost, besides refraining from encashing Bank Guarantee valuing Rs. 97.5 Crores. Directions were sought against the Jammu and Kashmir Bank Limited, Residency Road, Srinagar also not to encash the Bank Guarantee. The Functionaries of Northern Railways contested the Application on various grounds.

(2.) RULING against the Northern Railways on the issue of lack of jurisdiction of the Court to entertain Contractor's Application, besides its right to get the work executed at Contractor's risk and cost, the Learned Principal District Judge, allowed Contractor's Application but in part. The Restraint directions issued by the learned District Judge, on the Contractor's Application are reproduced hereunder:

(3.) AT the hearing of these Appeals, the Contractor's learned counsel restricted Appellant's relief in CIMA No. 278/2008 only to the extent of seeking setting aside of learned District Judge's order whereby it stood restrained from participation in the fresh contract which the Northern Railways may go in for pursuant to termination of the appellant's Contract. He, on instructions of the Appellant, however, stated that the Appellant would keep the Bank Guarantee alive during the operation of interim directions issued by the Court.