2023 Supreme(J&K) 145
IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
N. KOTISWAR SINGH, J.
M/s A K Engineers and Contractors Pvt. Ltd. – Appellant
Versus
Union Territory of J&K and ors. – Respondents
Arb P No. 13 of 2022
Decided on : 01-11-2023
Advocate Appeared:
For the Appellant :Mr. R K Gupta, Sr. Advocate with Mr. Udhay Bhaskar, Advocate.
For the Respondent: Mr. Raja M. Bucha, Mr. Ravinder Gupta
: The subsequent work can be considered an integral part of the initial contract if it cannot be segregated, making any dispute arising from it amenable to arbitration.
Headnote:Arbitration - Validity of Contract - Section 11 of the Arbitration and Conciliation Act, 1996 - The court examined whether a valid contract containing an arbitration clause existed between the parties for the construction of a double lane bridge. The court held that the subsequent work of constructing the double lane bridge was integral to the original contract for a single lane bridge, and any dispute arising from this integrated work would be amenable to arbitration if the original contract contained an arbitration clause. Therefore, the court appointed an arbitrator to resolve the dispute.
ORDER :
1. Heard Mr. R K Gupta, learned Senior counsel assisted by Mr. Udhay Bhaskar, learned counsel for the petitioner and Mr. Raja M. Bucha, learned counsel for the respondents.
2. The petition has been filed seeking appointment of an arbitrator by invoking Section 11 of the Arbitration and Conciliation Act, 1996 (for short the “Act”).
3. It is the case of the petitioner that the petitioner Company was awarded a civil contract by the respondents for design and construction of a Single Lane Bridge of 100 mtr long (4x2.500Mtr C/c of bearings, pre stressed concrete memorable) on Krial-Rehal, for an amount of Rs. 385.00/- Lacsafter being the successful bidder in the NIT dated 11.01.2004.As per the contract, the work allotted to the petitioner on 26.04.2014 was to be completed within eighteen months.
4. According to the petitioner, after the award of the contract, the foundation stone laying ceremony of the bridge was held on 03.03.2014 on which date the then Union Minister of Health and Family Welfare had laid the foundation on which occasion, a public announcement was made for converting the single lane bridge to a double lane-bridge. It is the case of the petitioner that after such a public announcement, the authorities acted upon the public announcement and a revised Detailed Project Report (DPR)was prepared and administrative approval was accorded by the concerned authority, i.e., the Development Commissioner, Works vide his letter No. PW/DCW/1552/15 dated 20.03.2015.Accordingly, the work was revisedatthe estimated cost of Rs. 752.00 Lacsas per the relevant Code of IRC/BIS/MORD/MORTH Manual/specifications.
5. It has been submitted that at the time of according administrative approval to the aforesaid revised project of double land bridge,the following conditions were specified:
“1. That the proposal is strictly devised and designed as per relevant Code of IRC/BIS/MORD/MORTH Manual/specifications.
2. That all the items related to Earth Work conform to authenticated NSLS.
3. That any such item(s) not covered under relevant schedule of Rats shall be paid in accordance with the set Codal Procedure.
4. That the work is executed in conformity with the revised Structural Design vetted/proof checked by IIT Delhi.
5. That the Chief Engineer R&B Department Jammu will ensure that the rates recommended for the increased scope are comparable with the similar nature of work.
6. That there is no Cost overrun or Time overrun involved in the Project.”
6. According to the petitioner, in terms of the revised DPR, the petitioner constructed the Double Lane Concrete Bridgeas per the drawing approved by the Department, and on completion of the bridge in the year 2015, it was handed over to the Department. It has been submitted that no dispute had been raised by the authorities as regards the quality of the work or any other aspect. However, when the petitioner raised the bills for payment for the works executed, the authorities released only Rs. 238.00 Lacs and subsequently, Rs. 60,000/- were paid. According to the petitioner, though certain amounts have been paid to him, an amount of Rs. 312.00 lacs remains unpaid.
7. As the said amount was not paid despite repeated requests made by the petitioner, he was compelled to approach this Court by filling a writ petition, being OWP No. 1360/2017, “M/s A K Engineers versus State of J&K and ors.” which was disposed of by this Court on 25.08.2017 with the direction to the respondent authorities to consider the claim of petitioner for payment of amount in question by issuing a speaking order within a period of six weeks from the date of order. It has been submitted that inspite of said direction issued by this Court, no payment has been made, leaving the petitioner with no option but to issue a legal notice dated 05.01.2022 for appointment of an arbitrator invoking Clause 24 of the General Conditions of the Contract of Standard Bidding Document for settlement of the disputes/claims within 45 days of the receipt of th