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2025 Supreme(J&K) 214

IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
Sanjeev Kumar, Puneet Gupta, JJ.
Union of India Through Chief Engineer and ors.- Appellants
Versus
M/s Des Raj Nagpal Engineers & Contractors - Respondent
Arb App No.1 of 2022
Decided On : 03-01-2025

Advocates Appeared:
For the Appellant : Mr. Vishal Sharma, DSGI
For the Respondent:Ms. Zoya Bhardwaj, Advocate

The court established that an authorized officer of the Union of India can file an appeal under the Jammu & Kashmir Arbitration and Conciliation Act, 1997, regardless of who signed the arbitration agreement.

Headnote:(A) Jammu & Kashmir Arbitration and Conciliation Act, 1997 - Section 34 - Appeal by the Union of India to challenge the dismissal of their application against an arbitral award. Garrison Engineer signed the application but was not a party to the arbitration agreement. Court ruled that the Union of India can file through any authorized officer. (Paras 1-5, 7, 11-12)

(B) Legal standing of parties - The Chief Engineer, signing on behalf of the Union of India, does not become a party. The contract is expressed to be made by the President through authorized officers. (Paras 10-11)

Facts of the case:
Union of India, through Chief Engineer, entered a contract with the respondent for completion of work phases. Dispute arose, leading to arbitration; an award was issued in favor of the respondent. The Union of India filed an application under Section 34, signed by the Garrison Engineer, leading to dismissal by the Single Judge on the grounds of lack of standing.

Findings of Court:
The application should not have been dismissed; the Garrison Engineer was authorized to act on behalf of the Union, and failure of the Chief Engineer to sign was not fatal to the application.

Issues: The court examined who constitutes a 'party' in the arbitration context and the authority of officers acting on behalf of the government in filing applications under the act.

Ratio Decidendi: The court clarified that the Union of India, as a party to the contract, is not rendered ineligible to appeal due to the identity of the signing officer, and procedural defects are curable.

Result: Appeal allowed; dismissed order set aside and remanded for disposal on merits.

Table of Content
1. jurisdiction of high court under arbitration act (Para 1)
2. challenge to dismissal of arbitration award (Para 2 , 5 , 6)
3. contract fulfillment and arbitration agreement (Para 3 , 4)
4. authority to execute government contracts (Para 7 , 8 , 9)
5. party status in arbitration context (Para 10 , 11 , 12)
6. curative irregularities in filing applications (Para 13)
7. appeal allowed, matter remanded for merits (Para 14)

JUDGMENT :

Sanjeev Kumar, J.

1. Instant appeal filed by the Union of India under Section 37 of the Jammu & Kashmir Arbitration and Conciliation Act, 1997 [“the Act of 1997”] arises out of an order dated 19th April, 2022 passed by a learned Single Judge of this Court in AA No.31/2012 titled Union of India and another v. M/s Des Raj Nagpal, whereby the learned Single Judge has dismissed the application of the appellants filed under Section 34 of the Act of 1997 to challenge an award dated 21st June, 2012 published by the Sole Arbitrator, namely Baljit Singh Chief Engineer (QS&C) in case titled M/s Des Raj Nagpal v. Union of India and others. The application of the appellants has been rejected by the learned Single Judge primarily on the ground that the Garrison Engineer, who has signed the application on behalf of Union of India was not party to the arbitration agreement and, therefore, was not an authorized person to file application under Section 34 of the Act of1997 for and on behalf of the Union of India.

2. The impugned order and judgment of the learned Single Judge is assailed by the Union of India on multiple grounds. However, before we advert to the grounds of challenge urged by Mr. Vishal Sharma, learned DSGI appearing for the appellants, we deem it appropriate and necessary to notice few facts which are germane to the disposal of the controversy raised in this appeal.

3. Pursuant to a contract agreement executed between Union of India through Chief Engineer, Pathankot Zone, appellant No.1 herein and the respondent M/s Des Raj Nagpal, the work, subject matter of contract agreement, was handed over to the respondent for execution. As per the contract agreement, Phase-I of the work was required to be completed by 19th March, 2002 and Phase-II by 19th January, 2003. The respondent completed both the phases within the extended period i.e. 30th March, 2005. Certain disputes arose between the parties out of the said contract and for resolution of these disputes, Sh. Baljit Singh (QS&C) was appointed as sole arbitrator. The arbitrator passed an award against the appellants, which was published on 21st June, 2012. Feeling dissatisfied and aggrieved of the award dated 21st June, 2012, the appellants filed an application under Section 34 of the Act of 1997. The application was filed on behalf of Union of India through Chief Engineer, Pathankote Zone and Garrison Engineer, Satwari Jammu Cant. and was signed by appellant No.2-Garrison Engineer.

4. Before the learned Single Judge, an objection was taken by the respondent that appellant No.2-Garrison Engineer was not party to the contract agreement and, therefore, was not competent to challenge the award by filing an application under Section 34 of the Act of 1997. Objection, as it seems from the impugned order, prevailed and the learned Single Judge vide impugned order dismissed the application filed by the appellants.

5. It is in the aforesaid backdrop and feeling aggrieved, the appellants are before us in this appeal filed under Section 37 of the Act of 1997. The impugned order is challenged primarily on the following grounds:-

a) That the learned Single Judge has failed to appreciate that the contract in question was between Union of India and the respondent and that the Union of India was entitled to file an application under Section 34 of the Act of 1997 through any authorized officer including the Garrison Engineer.

b) That the learned Single Judge committed an error in holding that since the arbitration agreement/contract was signed by the Chief Engineer on

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