IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ARB-77-2026 (O&M)

Date of decision: 26.02.2026 M/S BHULLAR CONSTRUCTIONS, ENGINEERS AND CONTRACTORS ...Petitioner(s)

VERSUS STATE OF PUNJAB AND OTHERS ...Respondent(s)

CORAM: HON'BLE MR. JUSTICE JASGURPREET SINGH PURI Present:- Mr. P. S. Rana, Advocate, for the petitioner.

Mr. Somesh Arora, Additional Advocate General, Punjab.

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J ASGURPREET SINGH PURI , J. (Oral)

1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) seeking appointment of an Arbitrator to adjudicate the disputes and differences which have arisen between the parties.

2. Learned counsel appearing on behalf of the petitioner submitted that there was an agreement between the parties containing a dispute resolution mechanism at Clause 25, which has been attached as Annexure A-2 along with the present petition. He further submitted that as per Clause 25(v)(c), when the original contract value is more than Rs.15 crores, the disputes shall be referred tribunal has also been mentioned in the aforesaid Clause. He further submitted that the contract value of the present dispute is more than Rs.15 crores and therefore, as per the aforesaid Clause, Arbitral Tribunal consisting of three members is to be constituted. However, considering the expenses involved, any Sole Arbitrator may be appointed by this Court. So far as the invocation of the aforesaid arbitration clause is concerned, he submitted while referring to Annexure A-4 dated 03.05.2025 that the aforesaid arbitration clause was invoked by sending a notice to the respondents but they did not admit the claim and therefore, the mechanism has failed and consequently, the present petition has been filed under Section 11 of the Act and has prayed that any independent Sole Arbitrator may be appointed by this Court.

3. On the other hand, Mr. Somesh Arora, Additional Advocate General, Punjab submitted that there is no dispute with regard to existence of the aforesaid arbitration clause and invocation of the said arbitration clause by way of issuance of notice vide Annexure A-4 and therefore, the respondents have no objection in case any Arbitrator is appointed by this Court. He also submitted that the respondents also have no objection in case any independent Sole Arbitrator is appointed by this Court instead of constituting any Arbitral Tribunal consisting of three members. He has however submitted that liberty may be granted to the respondents to take all the legally permissible pleas, including plea with regard to dispute resolution mechanism before the learned Sole Arbitrator at an appropriate stage and in accordance with law.

4. Considering the joint statement made by both the learned counsels for the parties, this Court would therefore appoint a Sole Arbitrator instead of the present application is allowed. Hon'ble Mr. Justice Shekher Dhawan, a former Judge of this Court, resident of House No.2109, Sector 21, Chandigarh. Mobile No. 8558809941, is nominated as the Sole Arbitrator to adjudicate the dispute between the parties, subject to compliance of statutory provisions including Section 12 of the Act.

5. Liberty is granted to the respondents to take all the legally permissible pleas, including plea with regard to dispute resolution mechanism before the learned Sole Arbitrator at an appropriate stage and in accordance with law.

6. Parties are directed to appear before the learned Arbitrator on date, time and place to be fixed and communicated by the learned Arbitrator at his convenience.

7. Fee shall be paid to the learned Arbitrator in accordance with the Fourth Schedule of the Arbitration Act, as amended.

8. Learned Arbitrator is also requested to complete the proceedings as per the time limit prescribed under Section 29-A of the Act.

9. A request letter alongwith a copy of the order be sent to Hon'ble Mr. Justice Shekher Dhawan, a former Judge of this Court.

(JASGURPREET SINGH PURI)

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