Jammu & Kashmir High Court – Srinagar Bench
M/S Hassan Roads Constructions Company vs J&K Economic Reconstruction Agency And on 27 February, 2026
Sr. No. 06
IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH
AT SRINAGAR
(THROUGH VIRTUAL MODE)
Arb P No. 47/2025
M/s Hassan Roads Constructions Company ...Petitioner(s)/appellant(s)
Through: Mr. Muzamil Yousuf Bhat, Advocate.
Vs.
J&K Economic Reconstruction Agency and ...Respondent(s)
others.
Through: Mr. Waseem Gul, GA.
CORAM:
HON'BLE THE CHIEF JUSTICE
ORDER
27-02-2026
1. The present petition has been filed under Section 11(6) of the
Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator.
2. The project “Up-gradation of Eastern Foreshore Road Lot 2 (PQC
Road) at Baba Dam” was awarded to the petitioner for a contract value of
Rs.17,26,73,702/- vide acceptance letter dated 08.01.2020. The project is
stated to have been duly executed and completed by the petitioner. And the
remedial measures recommended by the National Institute of Technology
(NIT) Srinagar, and the Director Technical J&K ERA, were taken and
implemented.
3. It is urged that despite satisfactory completion of the contract,
respondents arbitrarily invoked Clause 35 of the Contract Agreement and
encashed bank guarantee of Rs.36,00,000/- against retention money vide
letter dated 22.08.2025 even though the defect liability period was valid till
29.08.2025. And the payment against the final bill is also stated to have been
withheld by the respondents. The petitioner feeling aggrieved moved to the
Court of Additional District Judge, Srinagar, under Section 9 of the
Arbitration and Conciliation Act. The application came to be dismissed with
liberty to the petitioner to initiate arbitration proceedings. Accordingly, the
petitioner served a notice dated 20.09.2025, under Section 21 of the Act,
upon the respondent invoking the arbitration clause (Clause GCC 24.04) of
the contract nominating Mr. Basharat Jeelani Kawoosa, Retired Chief
Engineer as its arbitrator and asking the respondents to nominate its
arbitrator within 30 days. It is urged that since the respondents failed to
nominate its arbitrator, the petitioner was left with no choice but to approach
this Court under Section 11 of the Act. Hence this petition.
4. Pursuant to the notice issued by this Court, the respondents had
caused appearance and filed their response. The respondents inter alia
contend that the petition is not maintainable being misconceived. It is
submitted that seeking performance of contractual obligations does not
amount to existence of dispute. It is submitted that during the currency of
Defects Liability Period, it was observed that the PQC has developed
various cracks in some panels in addition to the surface deterioration which
were asked to be rectified by the petitioner, however, the petitioner refused
to do so. And in view of this, the respondents resorted to encashment of the
bank guarantee. It is urged that the petitioner has suppressed the material
facts, as such, the petition be dismissed.
5. The existence of the arbitration clause, as aforesaid, and its
invocation by the petitioner is not disputed.
6. Although, as indicated earlier, the respondents have filed objections
to the petition but during the course of hearing, learned counsel for the
respondents pleads no objection in case the petition is allowed.
7. In the given facts and circumstances, coupled with statement made at
the Bar by learned counsel for the respondents, the petition is allowed.
Accordingly, with the consent of learned counsel for the parties, Mr.
Muzaffar Hussain Attar, Judge High Court of Jammu & Kashmir and
Ladakh,(Retd.) (Mob. No.9419000940) is appointed as the sole arbitrator.
Who shall proceed with the matter in accordance with the provisions of the
Act. And to make an award within the time provided in the Act itself after
charging the prescribed fee along with incidental expenses to be shared by
the parties.
8. Registry to send a copy of this order to the learned arbitrator.
(ARUN PALLI)
CHIEF JUSTICE
Srinagar
27.02.2026
Abdul Qayoom Lone Abdul Qayoom, Secy.
I attest to the accuracy and
authenticity of this document
02.03.2026 11:51