State of Hp and Ors. Vs Ajay Kumar Sharma

____________________________________________________ _ For the petitioners: Mr. Anup Rattan, Advocate General, with Ms. Ayushi Negi, Deputy Advocate General. For the respondents: Mr.Naresh K. Sood, Senior Advocate, with Mr. Suryansh Thakur, Advocate.

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Ajay Mohan Goel, Judge (Oral)

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Present petition has been preferred by the State under Section 34 of the Arbitration and Conciliation Act against the Award passed by learned Arbitrator in Arbitration Case CARBC No.153 of 2025, titled Ajay Kumar Sharma Versus State of Himachal Pradesh & others, decided by learned sole Arbitrator on 10.03.2022.

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When this case was listed on 15.06.2026, the following order was passed:-

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“CARAP No.57 of 2026

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By way of this application, a prayer has been made that, as the matter stands settled between the parties, the case be ordered to be listed on 18.06.2026, as was earlier agreed.

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Learned Senior Counsel for the respondent submits that the filing of the present application was necessitated because, although it was agreed between the parties that the matter be listed on 18.06.2026, but in

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1 Whether reporters of the local papers may be allowed to see the judgment?

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2

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2026:HHC:22970

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order dated 27.05.2026, there is a typographical error and the next date of hearing has been mentioned as 18.07.2026.

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Learned Deputy Advocate General acknowledges the submission made by learned Senior Counsel for the respondent.

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In light of the above, this application is allowed and the listing of the case is preponed from 18.07.2026 to 18.06.2026. Application stands disposed of.

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CARBC No.153 of 2025

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List on 18.06.2026. ”

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Today, learned Deputy Advocate General has handed over instructions received by the Office of learned Advocate General from Executive Engineer, Mandi Division No.-II, HPPWD, Mandi, which are quoted hereinbelow:-

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“Kindly refer to your office communication and the directions passed by the Hon'ble court on 18-052026 and 28-05-2026 on the subject cited above.

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In this regards it is intimated that pursuant to the directions of the Hon'ble court the parties held the meetings and the contractor submitted proposal for settlement of disputes for an amount of Rs. 442.5 Lacs. The proposal was initially discussed in Zonal Level Grievances Redressed Committee Mandi. The said committee after examining the claims made recommendation to the Department Level Litigation Monitoring committee for accepting the proposal.

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Thereafter the meeting of DLMC was held on 10-06-2026 at HP Secretariat and the proposal was deliberately in detail by the DLMC. After detailed

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3

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2026:HHC:22970

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deliberation on the dispute and proposal, the committee has accepted the recommendation of zonal committee for settlement of disputes with contractor for a sum of Rs.442.5 Lacs, as full and final payment of contractor's claim. It was also observed that the agreed amount may be ordered to be released to the contractor and balance amount of Rs 16.5 Lacs along with interest on the already deposited amount of Rs. 459.5 Lacs, may be withdrawn from Hon'ble high court.

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The MOM of the DLMC are enclosed for kind

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perusal.

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You are therefore requested to kindly apprise the Hon'ble court on the next date of hearing and pray accordingly for disposal of the matter. ”

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Learned Senior Counsel appearing for the respondent acknowledges that the matter stands amicably settled between the parties in terms of the instructions and the proceedings can be closed by directing that out of the amount which is lying deposited with this Court, an amount of Rs.442.5 Lacs (Four Crores Forty Two Lacs Fifty Thousand rupees) as full and final payment be released in favour of the respondent-Contractor and the balance amount of Rs.16.5 Lacs alongwith interest can be released in favour of the petitioner.

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Learned Deputy Advocate General has also made available for the perusal of the Court the Minutest of meeting of the Departmental Litigation Monitoring Committee, held on 10.06.2026, in the Chamber of Principal Secretary (PWD) to the Governemnt of

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4

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2026:HHC:22970

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Himachal Pradesh and perusal thereof demonstrates that the Departmental Litigation Monitoring Committee decided to settle the claim in favour of the Contractor for an amount of amount of Rs.442.5 Lacs including GST @ 18% as full and final settlement of the claim of Ajay Kumar Sharma.

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In light of the above, these proceedings are closed as settled by ordering that out of the amount which stands deposited with this Court, amount of Rs.442.5 Lacs be released in favour of the respondent-Contractor as full and final payment payable to him by the petitioner-State and the balance amount of Rs.16.5 Lacs alongwith interest on the already deposited amount of Rs.4.59 Crore, be released in favour of tihe State. The amount be released in favour of the respondent in its Bank account, details whereof be furnished by learned Counsel for the respondent with the Registry of this Court. Pending miscellaneous application(s), if any, also stand disposed of.

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(Ajay Mohan Goel) Judge

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June 18, 2026 (Rishi)

State of Hp and Ors. v. Ajay Kumar Sharma

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State of Hp and Ors. v. Ajay Kumar Sharma

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