JAMMU DEVELOPMENT AUTHORITY Vs. SARAL SUGAM SEWA SOCIETY

JUDGEMENT

(1.) This arbitration application, filed by the Jammu Development Authority, is directed against the award dtd. 2/1/2013 passed by the learned sole arbitrator, whereby the learned arbitrator has awarded an amount of Rs.34,23,473.00 along with 9% interest with effect from 2/5/2012, when the arbitrator entered upon the reference till the realization of the awarded amount in favour of respondent-society and against the Jammu Development Authority.

(2.) The facts-in-short, as gathered from the file, are that the respondent- society being an NGO entered into an agreement with JDA on 15/12/2008 for sanitation, operation and maintenance of public toilet blocks owned and constructed by the JDA at as many as 28 sites within the Municipality of Jammu, out of which six sites were to be maintained free of cost. Possession of these sites, as claimed by the respondent-society, was given on 22/12/2008. Before entering into a contract with the respondent-society, the JDA vide order dtd. 15/12/2008 terminated the contract with M/s. Sulabh International which was earlier maintaining 22 toilet blocks, out of these 28 toilet blocks. Against the said order, M/s. Sulabh International filed two writ petitions before this Court and a coordinate Bench of this court vide interim order dtd. 23/12/2008 stayed the operation of communication dtd. 15/12/2008 in OWP No.1018/2008. It is claimed that thereafter M/s. Sulabh International in connivance with JDA forcefully dispossessed the respondent-society from 22 toilet blocks, except for six sites where the services were being given free of cost by the respondent-society. The respondent-society continued to maintain six free sites till 26/4/2010 when the same were allotted to one M/s. Kashmira Singh and Sons, even when the agreement between the respondent-society and JDA for the free sites was operational. Thereafter, the JDA also terminated the contract of petitioner vide order dtd. 9/9/2010 and on the same very day entered into an agreement with M/s. Sulabh International for maintenance of these 22 toilet blocks.

(3.) Aggrieved of the same, the respondent-society filed OWP No.1154/2010 challenging the order of termination and this Court vide order dtd. 18/4/2012 referred the matter to arbitration. Accordingly, both the parties participated in the arbitration proceedings, filed their claims and counter claims and also led evidence. The sole arbitrator after completion of arbitration proceedings passed the award dtd. 2/1/2013 in favour of respondent-society and against the JDA. Against the said award, the JDA has filed the present arbitration application seeking setting aside of the award.