HIGH COURT OF JAMMU & KASHMIR AND LADAKH

AT SRINAGAR

CJ Court

Case: A.P. No.3 of 2019

M/s P K Global Trends Private Limited

.....Appellant/Petitioner(s)

Through :- Sh. Shaqir Haqani, Advocate.

v/s

Airport Authority of India

.....Respondent(s)

Through :- Sh. M M Dar, Advocate.

CORAM:

HON’BLE THE CHIEF JUSTICE

ORDER

25.03.2022

1.

The petitioner-company has preferred this petition under Section 11

of the Arbitration and Conciliation Act for the appointment of an arbitrator to

adjudicate upon the disputes arisen between the parties.

2.

The petitioner company alleges that in terms of the Request for

Proposal issued by the respondent i.e. Airport Authority of India and the

Concession Agreement entered into between the parties, the petitioner

company on acceptance of its bid was awarded the right and privilege for

developing, marketing, setting up, operating, maintaining and managing the

retail outlets for a period of seven years at the Srinagar International Airport

(hereinafter referred to as ‘the Project’).

3.

It is alleged that in the Request for Proposal the respondent had

assured to have all the existing retail outlets at the airport vacated failing which

the petitioner company would be entitled for appropriate rebate in its

concession fee. The petitioner company came to know that three commercial

shops were running with the permission of the respondent and the same were

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not got vacated. The petitioner company as such right from the date of

allotment/award of the project had discussions with the respondent to have the

shops vacated and for grant of adequate rebate on the concession fee but the

respondent failed to take any action.

4.

It may be pertinent to mention here that the tender process for the

award of the above project was initiated in the year 2017-18. The technical bids

were opened on 16.03.2018 and the financial bids were opened on 21.03.2018

whereupon the petitioner company was declared as the successful bidder vide

letter dated 09.04.2018.

5.

It is stated that after prolonged discussion relating to the vacation of

the three retail shops, grant of rebate in the concession fee due to non vacation

of the said shops and in context with bank guaranty, disputes arose between the

parties. The petitioner company vide letter dated 03.07.2018 requested for the

appointment of an arbitrator so that disputes may be resolved. The said letter

was followed by the reminder dated 11.07.2018 and ultimately the respondent

vide letter dated 17.07.2018 refused to appoint the arbitrator and also refused to

have the shops vacated on the ground that the same were allotted as per the

policy of the Airport Authority of India and were not intended to be vacated.

The petitioner company, thereafter, submitted a representation dated

19.07.2018 clearly explaining the points of disputes and for referring the matter

to the sole arbitrator to resolve the said disputes. The said request was also

turned down by the respondent vide letter dated 27.07.2018.

6.

In addition to it, the petitioner company was served with a show-

cause notice dated 30.11.2018 as to why letter of award of the project may not

be withdrawn which has duly been replied by the petitioner company but the

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fact remains that despite the disputes having arisen, the same have not been

referred to arbitration.

7.

In the above backdrop petitioner company has preferred this petition

for appointment of an arbitrator. The respondent has filed reply/objections to

the above arbitration petition, inter alia, contending that the petitioner company

had filed a petition before the Additional District Judge at Srinagar seeking

restrain upon the respondent from acting on the show-cause notice dated

30.11.2018 and to restrain it from taking any coercive steps against it. The said

petition was disposed of vide order dated