204 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ARB-253-2022 Date of decision : 27.03.2026 M/s R.R.K.K. Infrastructure …….Applicant Versus Punjab State Bus Stand Management Co. Ltd. and another ….Respondents CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE Present: Mr. Sunil Kumar Garg, Advocate, for the applicant.

Ms. Samdisha Kaur, AAG, Punjab.

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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. Short reply by way of affidavit dated 24.03.2026 filed on behalf of the respondents is taken on record and perused.

3. The rival parties herein entered into agreement dated 25.04.2018 (Annexure P-1), containing an arbitration clause as follows :

“20.. Dispute Resolution 20.1 Dispute Resolution Any dispute, difference or controversy of whatever nature regarding the validity, interpretation, implementation or the rights and obligations arising out of, or in relation to, or howsoever arising under or in relation to this Contract between the parties, and so notified by either party to the other party (the “Dispute”) shall be subject to the dispute resolution procedure set out hereinafter.

20.2 Direct discussion between parties The parties agree that any dispute that may arise between them shall be first submitted for direct discussion between the parties. For this purpose, the notice of dispute (the “Notice of Dispute”) sent by one party to the other party under Clause 20.1 shall be considered an invitation for direct discussion, and it should specify a reasonable time and venue for conduct of the negotiation proceedings. In addition, the Notice of Dispute shall specify the basis of the dispute and the amount claimed. In the direct discussion proceedings, each party shall be represented by officials or employer with sufficient knowledge and authority over the subject matter of the dispute in order for the discussion to be meaningful. At the discussion proceedings, the party that has given the Notice of Dispute shall present an offer of a settlement, which may form the starting point of discussions between the two parties during the discussion proceedings.

20.3 Arbitration or Adjudication a. In the event that the parties are unable to resolve the dispute through direct discussion under Clause 20.2, the parties shall submit the dispute for adjudication to the Chairman, PUNBUS. However, in the event that the dispute is not resolved the parties shall submit the dispute for arbitration in accordance with the Arbitration and Conciliation Act, 1996 (with upto date Amendments). There shall be a Board of 3 (three) arbitrators of whom each party shall select 1 (one) and the third shall be appointed by the two arbitrators appointed by the parties.

c. The arbitrators shall make a reasoned award, and any award made pursuant to this Clause 20.3 shall be final and binding on the parties as from the date on which it is made, and the Operator and the Owner agree to undertake to carry out such award without delay.

d. The arbitration proceedings shall be conducted in the English language and in Chandigarh or such other place as may be agreed between the parties.

e. The cost incurred on the process of arbitration including inter alia the fees of the arbitral tribunal and the cost of the proceedings shall be borne by the parties in equal proportions. Each party shall bear its own legal fees incurred as a result of any dispute under this Clause 20.

20.4 Performance during Dispute Performance of this Management Contract shall continue during the settlement of any dispute under this Clause 20. The provisions for dispute settlement shall be binding upon the successors, assigns and any trustee or receiver of either the Owner or the Operator.”

3.1 Dispute erupted between the parties. The applicant served ‘notice of dispute’ dated 14.03.2022 (Annexure P-29) upon the respondents as per Clause 20.2 of Management Contract and Section 21 of 1996 Act fo