K.N. SINGH Vs. EXECUTIVE ENGINEER, PMGSY

JUDGEMENT

(1.) The instant petition under Section 11 of the J & K Arbitration and Conciliation Act, 1997 seeks appointment of Arbitrator. In pursuance of NIT, a contract for construction of road from Rajdhani to Pangrian Package No. JK-12-16, Phase-IV Length 10 Kms Block Manjakote of Rajouri District was awarded to the petitioner. The standard form agreement was executed between the parties on 17.09.2007 and the work was to be completed within a period of nine months. However, after execution of agreement some correspondence took place between the parties. The petitioner-contractor raised the issue by sending a communication on 11.02.2008. The petitioner-contractor apprised the respondents that the work was stopped by the locals due to land dispute on account of non-payment of compensation of acquisition of their land. The aforesaid letter was duly replied. There was further correspondence on that issue. Eventually a final notice was published by the respondents in the English daily (Daily Excelsior) dated 28.08.2009.

(2.) According to the allegations made in the notice the allotment of work was made on 17.09.2007 and the petitioner-contractor had failed to resume construction of work which had been stopped for more than 40 days. The petitioner-contractor was asked to attend personally or through authorized representative for taking final measurements vide letter dated 13.08.2009, but he failed to turn up. The final notice asked him to attend office of the Executive Engineer, PMGSY Division Rajouri on 03.09.2009 during office hours so as to take final measurement to put the unfinished work to fresh tenders at his risk and cost. Eventually, the contract was terminated by invoking Clause 52 of the Contract Agreement dated 27.07.2011. It has come on record that there is Arbitration Clause 25.4 in the agreement between the parties dated 17.09.2007 and same is set out below in extenso for facility of reference:

(3.) The aforesaid narration of facts would show that there is existing dispute between the parties and also there is an arbitration clause in the agreement signed by them. Therefore, both the conditions for making reference to an arbitrator stand satisfied.