Allowed

Ashok Kumar Garg v. State of Haryana and Anr.

Punjab & Haryana HC16 Mar 2012ARB/32/2011

Case brief

AI extract

What is this about?

Hon'ble Mr. Justice Hemant Gupta, in an arbitration petition, allowed petitioner's prayer for appointment of an Arbitrator, directing the Engineer-in-Chief to appoint one within two months, conditional upon petitioner furnishing the security amount as per the Agreement.

What did the court decide?

Direction to Engineer-in-Chief, Haryana, PWD B&R to appoint an Arbitrator within two months, conditional on petitioner furnishing security.

Ashok Kumar Garg Vs State of Haryana and Anr. — Arbitration | Punjab & Haryana HC (2012)

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Arbitration Case No. 32 of 2011

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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Arbitration Case No.32 of 2011

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Date of decision:- 16.03.2012

Ashok Kumar Garg

...... Petitioner

State of Haryana etc.

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.....Respondents

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CORAM:-HON'BLE MR. JUSTICE HEMANT GUPTA

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Present: Mr. Yovan Sharma, Advocate, for Mr. Vikram Singh, Advocate, for the petitioner.

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Ms. Palika Monga, DAG, Haryana, for the respondents.

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HEMANT GUPTA, J. (ORAL)

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The petitioner was granted contract for construction of Mini Secretariat-cum-SDO (Civil), Tehsil Complex at Hansi in Hisar District, vide letter dated 31.10.2005. The time limit to complete the work was 24 months. As per the petitioner, in pursuance of the directions of this Court in respect of shifting of venue, the respondents prepared a bill amounting to Rs.14,29,134/-.

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Thereafter, the petitioner gave many representations to the respondents to extend the time limit and to release the amount of approximately Rs.17 lacs spent by him. The petitioner served a letter dated 19.10.2008 (Annexure P-7) to the Engineer-in-Chief, Haryana, PWD B&R, Sector 19-A, Chandigarh for appointment of an Arbitrator, with copy to the Executive Engineer, PWD B&R, Br. Hansi. Thereafter, the petitioner also served a notice dated 26.11.2008 to the Engineer-in-Chief, Haryana, PWD B&R, Sector 19-A, Chandigarh to appoint an Arbitrator to resolve the disputes between the parties. But since no Arbitrator was appointed, the

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Arbitration Case No. 32 of 2011

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petitioner invoked the jurisdiction of this Court for appointment of an Arbitrator.

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In reply on behalf of the respondents, it is pointed out that in terms of the Agreement, the petitioner has to apply to the Engineer-inCharge for settlement of disputes and if the same is declined, then to apply for appointment of an Arbitrator. It is also pointed out that the petitioner has not applied to the Engineer-in-Charge nor deposited the security in terms of Clause (25A.5) of the agreement, therefore, the petitioner is not entitled to seek appointment of an Arbitrator.

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There exists dispute between the parties, as to whether which of the party is a defaulter in performance of the contract granted to the petitioner vide letter dated 31.10.2005. The petitioner has sought appointment of an Arbitrator vide notice dated 19.10.2008. A copy of the said notice was also sent to the Executive Engineer. It is the said Executive Engineer, who is the Executive Engineer-in-Charge as per Clause 25A of the Agreement. Therefore, the petitioner has complied with the terms of the Agreement. In respect of non-deposit of the security amount, the same can be made condition precedent before an Arbitrator is appointed.

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In view of the above, the present petition is allowed with a direction to the Engineer-in-Chief, Haryana, PWD B&R, Sector 19-A, Chandigarh to appoint an Arbitrator to resolve the disputes between the parties, if the petitioner furnishes the security amount in terms of Clause (25A.5) of the Agreement within a period of two months from today.

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Disposed of accordingly.

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(HEMANT GUPTA) JUDGE

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16.03.2012 Vimal

Ashok Kumar Garg v. State of Haryana and Anr.

Case brief

What is this about?

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Ashok Kumar Garg v. State of Haryana and Anr.

Case brief

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What did the court decide?

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