208 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ARB-596-2025 Date of decision : 13.02.2026 M/s KMV Projects Ltd.

…….Applicant Versus State of Haryana and another ….Respondents CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE Present: Mr. Avinash K. Trivedi, Advocate (through video conferencing), for the applicant.

Mr. Neeraj Gupta, Addl. Advocate General, Haryana.

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SHEEL NAGU, CHIEF JUSTICE

1. Instant application u/s 11 (6) of Arbitration and Conciliation Act, 1996 (‘1996 Act’ for brevity), seeks appointment of Arbitrator.

2. Reply filed on behalf of the respondents has been perused.

3. Letter of Acceptance dated 16.04.2021 (Annexure P-6) and Contract Agreement dated 20.04.2021 (Annexure P-7) were executed between the rival parties, containing an arbitration clause as follows :

“23.9. Arbitration (a) Where any of the party is not satisfied with the order passed by the competent authority/Standing Empowered Committee can apply for appointment of Arbitrator. In case the party invoking arbitrator is contractor he shall deposit 2% of claim amount with Engineer-in-Charge. On termination of the arbitration proceedings, this fee shall be adjusted against the cost, if any, awarded by the arbitrator against the claimant party and the balance remaining after such adjustment, and in the absence of such cost being awarded, the whole of the sum bill will be refunded within one month of the date of award. An Arbitral Tribunal consisting of 3 arbitrators, one each to the appointed by the Employer after taking approval from Engineer- in-Chief and the contractor and the third arbitrator to be chosen by the two arbitrators so appointed by both the parties to act as Presiding Arbitrator. In case of failure of the two arbitrators appointed by the parties to reach upon a consensus within a period of 30 days from the appointment of the arbitrator appointed subsequently, the Presiding Arbitrator shall be appointed by the Administrative Secretary, I&WR Department Haryana (Principal Secretary/Additional Chief Secretary) as the case may.

(b) If one of the parties fails to appoint its arbitrator in pursuance of sub-clause (a) above within 30 days after receipt of the notice of the appointment of its arbitrator by the other party, then the Administrative Secretary, I & WR Department Haryana shall appoint the arbitrator. A certified copy of the order of the Administrative Secretary, I & WR Department, Haryana making such an appointment shall be furnished to each of the parties.

(c) Arbitration proceedings shall be held in India, and the language of the arbitration proceedings and that of all documents and communications between the parties shall be English.

(d) The decision of the majority of arbitrators shall be final and binding upon both parties. The cost and expenses of Arbitration proceedings will be paid as provided hereinafter. However, the expenses incurred by each party in connection with the preparation, presentation, etc. of its proceedings as also the fees and expenses paid to the arbitrator appointed by such party or on its behalf shall be borne by each party itself. The fee and expenses of presiding Arbitrator shall be borne by both the parties equally.

(e) Performance under the contract shall continue during the arbitration proceedings and payments due to the contractor by the employer shall not be withheld, unless they are the subject matter of the arbitration proceedings.

(f) The fee and other charges payable to an arbitrator shall be as per clause 25 of “THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015.”

3.1 Dispute erupted between the parties. The applicant served notice dated 05.04.2025 (Annexure P-18) upon the respondent seeking resolution of dispute through Arbitral Tribunal, but no appointment was made by the respondent. Further, in terms of clause 23.9 (b) of Conditions of Contract, applicant sent notice dated 02.07.2025 (Annexure P-21) through e-mail dated 07.07.2025 (Annexure P-22) and through speed post dated 08.07.2