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HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR.

Case No: Arb App No.05/2024 Reserved on: 10.07.2026 Pronounced on: 06.10.2026 Uploaded on: 06.10.2026 Whether the operative part or full Judgment is pronounced :Full Kamal Krishan Chibber (aged 83 years)

S/O Sh. Noralta Singh Chibber, R/O Ram Nivas, Ist Floor M.K.Road, Khanna, Panjab through his duly constituted attorney Jeevan Chibber S/O Kamal Krishan Chibber R/O Ram Nivas, 1^st Floor, M.K.Road, Khanna, Panjab.

……Appe llant(s)…..

Through: Mr. M. A. Dar, Advocate.

v/s

1. UT of J&K (Previously State of J&K) through Chief Secretary, new Secretariat, Srinagar/Jammu. 2. Commissioner Secretary, Power Development Department, New Secretariat, Srinagar/Jammu.

3. Managing Director, Power Development Corporation, Boulevard Road, Srinagar.

4. Chief Engineer, Generation In-

Charge USHP-II PDD Complex, Bemina Srinagar.

5. Executive Engineer, Civil Maintenance Division, Formerly Wangat Link Division (USH)), Kangan.

Mr. M. A. Chashoo, Sr. Advocate, with Through: Ms. Hikma Advocate.

…Respondent(s)…

CORAM: HON’BLE MR. JUSTICE RAJNESH OSWAL, JUDGE HON’BLE MR. JUSTICE RAHUL BHARTI, JUDGE

JUDGMENT

PER RAJNESH OSWAL-J

1. This is an appeal under Section 37 of the Jammu & Kashmir Arbitration and Conciliation Act, 1997 (in short, “the Act”), directed against a judgment dated 04.07.2024 passed in Arb. P.No.5/2019, whereby the learned Single Bench has allowed an application under Section 34 of the Act filed by the respondents and has come to set aside sole arbitrator’s final award dated 31.12.2018 which otherwise was in favour of the appellant.

Factual Matrix:

2. Vide a letter of award bearing No. USHP-II/EC/27 dated

30.06.1988, the appellant was awarded a contract for execution of balance work of Wangat Weir at USHP-II, Kangan. As per the terms and conditions of consequent agreement executed between the parties, period of completion stipulated was up to 30.11.1989.

3. As the appellant was not able to complete the work within the stipulated time and also within extended period of time, i.e. up to year 1992, so the Executive Engineer concerned served a termination notice No. 214-16 dated 05.05.1998, subsequently followed by instant termination of the contract on 05.05.1998.

4. The total cost of allotted work was fixed at Rs. 199.06 lakhs against which the appellant is said to have completed the work only to extent of Rs. 113.00 lakhs up to 01.04.1994.

5. The appellant had started approaching the respondents through series of representations dated 29.11.2000, 30.12.2000, 22.05.2001, 11.04.2001, 25.07.2003, 31.07.2004, 03.09.2005 and 26.02.2011 for settlement of his claim/s.

6. When his repeated communications received no response, the appellant invoked section 11 of the Act whereby in terms of an order dated 04.11.2013 in AA No. 19/2013, Mr. G.M. Dar, District and Sessions Judge (Retd), was appointed as sole arbitrator, who entered upon the reference on 15.04.2014.

7. Before the Sole Arbitrator, the appellant, through his counsel, submitted his statement of claims. The composition of the statement of claims submitted by the appellant is as under:-

a. Balance escalation costs : Rs.21,43,536/- b. Balance amount of the final bill : Rs. 76,865/- c. Flood damages : Rs. 24,25,987/- d. Diversion of Nallah : Rs. 11,32,774/-

e. On account of security deposit and amount of earnest money deposit : Rs.8,05,000/-.

f. Interest @ 18% compound from

1999 to 2013 : Rs.1,77,77,237/-.

8. It was stated by the appellant that, at one point of time, the respondents took a plea that some civil suit litigation was pending before the Civil Court of learned Additional District Judge, Srinagar; therefore, the release of payment due to the appellant was to remain on hold which had made the appellant to seek the indulgence of said Civil Court to obtain a clarification on 18.08.2005, wherein it stood stated that there is no prohibitory order in operation on the strength of which the settlement of claims and its paymen