HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
M/S P. K. GLOBAL TRENDS PRIVATE LIMITED – Appellant
Versus
AIRPORT AUTHORITY OF INDIA – Respondent
AP 3/2019
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