Authority: High Court of Jammu & Kashmir and Ladakh at Jammu (Chief Justice)

Order Date: 06-11-2026

Case Overview

  • Petitioner: M/s Des Raj Nagpal Contractors Pvt. Ltd, MES Contractors and Government Order Suppliers, represented by Advocate Mr. Dheeraj Sharma.
  • Respondents: Union of India and others, represented by Mr. Sumant Sudan, assisting counsel to Sr. Advocate Mr. Vishal Sharma (DSGI).
  • Contract Details: CA No. CEUZ/135WE/06/2011-12 for provision of sewage disposal, external water supply and underground tank for MAP at Nagrota; contract value ₹2,99,66,189.07. Work Order No.1(F) dated 22‑06‑2011; period of completion 15 months; site hand‑over and commencement on 22‑Jun‑2011; scheduled completion on 21‑Sept‑2012.
  • Dispute Chronology:
  • Phase‑2 physical works completed on 09‑Dec‑2025.
  • Petitioner expected disbursement of ₹56.00 lakhs; respondents issued a final notice on 28‑Feb‑2026 threatening contract termination.
  • Petitioner lodged a protest letter on 05‑Mar‑2026.
  • Commercial Court granted interim relief to petitioner; respondents subsequently issued a completion certificate on 13‑Apr‑2026.
  • Despite the certificate, respondents withheld the 15th RAR, retention money and compensation for abnormal prolongation.
  • Petitioner invoked Condition 70 of GCC (IAFW‑2249‑1989) via a letter dated 12‑Apr‑2026, seeking appointment of an arbitrator; respondents failed to act.
  • Arbitration Clause: All disputes, except those expressly final and binding, shall be referred to the sole arbitration of a serving officer having an engineering degree or equivalent, appointed by the Engineer‑in‑Chief Army HQ or, in his absence, the officer officiating as Engineer‑in‑Chief, Army HQ, New Delhi.

Final Outcome

  • The petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 is allowed.
  • Arbitrator Appointed: Sh. Parkash Makhijani, Joint Director (Technical) MES, is appointed as the sole arbitrator.
  • The arbitrator shall conduct the proceedings in accordance with the Act, charge the prescribed fee and incidental expenses to be shared by the parties, and render an award within the time prescribed under the Act.
  • Respondents are at liberty to raise all objections regarding the subject matter before the arbitrator.
  • The Registry is directed to send a copy of this order to the learned arbitrator.

Topics: Arbitration, Government Contract Dispute