M/S Bansal Construction Company Vs Punjab Water Supply… — Arbitration | Punjab & Haryana HC (2025)

M/S Bansal Construction Company Vs Punjab Water Supply… — Arbitration | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Application allowed: Mr. Justice S.N. Aggarwal, Former Judge of this Court, appointed as Sole Arbitrator to adjudicate the dispute, subject to compliance of statutory requirements including Section 12 disclosures; parties to appear before the Arbitrator on 10.10.2025 at 10:00 AM; arbitrator's fee per the Fourth Schedule of the 1996 Act as amended; proceedings to be completed within the Section 29-A time limit; pending applications disposed of.

Issue for consideration

Whether an Arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996 to adjudicate the dispute arising out of work allotted to the applicant vide letter dated 30.09.2021. +1 more

Court's answer

Conditions to invoke power conferred by Section 11(6) of the 1996 Act stand satisfied; the Court therefore appointed a Sole Arbitrator to adjudicate the dispute between the parties.

Ratio / Principle

Mr. Justice S.N. Aggarwal, Former Judge of this Court, was appointed as Sole Arbitrator subject to compliance of statutory requirements, and he is required to comply with the mandate of Section 12 of the 1996 Act before proceeding further.

Key takeaways

The Arbitral Tribunal is directed to examine the question of existence of the arbitration agreement along with the other issues raised by both sides.ratio¶27
The parties are at liberty to raise all claims, defences, counter claims and pleas before the Arbitrator, and any observation made in this order will not be binding on the learned Arbitrator.ratio¶28

Detailed headnote1 paragraphs

Arbitration — Appointment of Arbitrator — Section 11, Arbitration and Conciliation Act, 1996. M/s Bansal Construction Company applied under Section 11 of the 1996 Act for appointment of an Arbitrator against Punjab Water Supply and Sewerage Board and others. Pursuant to a tender, work was allotted to the applicant vide letter dated 30.09.2021; the tender document contained an arbitration clause; the applicant's notice seeking resolution of the dispute through an Arbitral Tribunal went unheeded. Respondents' counsel contended that no agreement was ever executed but could not controvert issuance of the allotment letter (Annexure P-1); the applicant also claimed submission of design, drawing and SBC on 18.11.2022. Holding that the conditions to invoke power under Section 11(6) stood satisfied, the Court appointed Mr. Justice S.N. Aggarwal, Former Judge of this Court, as Sole Arbitrator, subject to compliance of statutory requirements including the Section 12 disclosure mandate, with fee payable per the Fourth Schedule and completion within the Section 29-A time limit. First appearance before the Arbitrator fixed for 10.10.2025 at 10:00 AM. The Arbitral Tribunal is itself to examine the question of existence of the arbitration agreement along with other issues; parties remain free to raise all claims/defences/counter claims/pleas, and observations in the order are not binding on the Arbitrator.

ARB-222-2025 (O&M)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

256 ARB-222-2025 (O&M) Date of Decision: 24.09.2025

M/s Bansal Construction Company

…Applicant

Versus

Punjab Water Supply and Sewerage Board and others …Respondents

CORAM: HON'BLE MR. JUSTICE JAGMOHAN BANSAL

Present: - Mr. Rajesh Goyal, Advocate for the applicant

Mr. Ajay Pal Saini, Advocate for the respondents

JAGMOHAN BANSAL, J. (Oral)

Through instant application under Section 11 of the Arbitration and Conciliation Act, 1996 (for short ‘ 1996 Act ’), the applicant is seeking appointment of an Arbitrator.

Pursuant to tender, the applicant was allotted work by the respondent vide letter dated 30.09.2021. A dispute erupted between the parties. There is an arbitration clause in the tender document. The applicant served notice upon the respondent seeking resolution of dispute through Arbitral Tribunal but to no avail.

Learned counsel for the respondents submits that agreement was never executed between the parties, however, he expressed his inability to controvert that letter dated 30.09.2021 (Annexure P-1) was issued by respondent to applicant.

MOHIT KUMAR 2025.09.24 17:01 I attest to the accuracy and authenticity of this order/judgment.

ARB-222-2025 (O&M)

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The applicant is claiming that design, drawing of work along with SBC was submitted to the respondent on 18.11.2022.

In the wake of afore-stated facts, the matter needs to be adjudicated by Arbitral Tribunal.

Conditions to invoke power conferred by Section 11(6) of 1996 Act stand satisfied, thus, I hereby appoint a Sole Arbitrator to adjudicate the dispute between the parties.

Mr. Justice S.N. Aggarwal, Former Judge of this Court, residing at House No.1458, Sector 40-B, Chandigarh, Mobile No.9876716983 is hereby appointed as a Sole Arbitrator to adjudicate the dispute between the parties, subject to compliance of statutory requirements. The learned Arbitrator is requested to comply with mandate of Section 12 of 1996 Act before proceeding further.

The parties at the first instance will appear before the Arbitrator on 10.10.2025 at 10:00 AM and thereafter, as directed by learned Arbitrator.

The Arbitrator shall be paid fee in accordance with the Fourth Schedule of the 1996 Act, as amended.

The Arbitrator is requested to complete the proceedings as per time limit specified under Section 29-A of the 1996 Act.

The Arbitral Tribunal would examine question of existence of arbitration agreement along with other issues raised by both sides.

Needless to mention, parties would be at liberty to raise all the claims/defences/counter claims/pleas before the Arbitrator. Any observation made hereinabove will not be binding on the learned Arbitrator.

MOHIT KUMAR 2025.09.24 17:01 I attest to the accuracy and authenticity of this order/judgment.

ARB-222-2025 (O&M)

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A request letter along with copy of this order be sent to

Mr. Justice S.N. Aggarwal.

Pending application(s), if any, shall stand disposed of.

(JAGMOHAN BANSAL) JUDGE

24.09.2025

Mohit Kumar

Whether speaking/reasoned	Yes/No
Whether reportable	Yes/No

MOHIT KUMAR 2025.09.24 17:01 I attest to the accuracy and authenticity of this order/judgment.