Kamal Krishan Chibber vs State of J. and K. and Others

M.M. Kumar, C.J.—The petitioner approached this Court u/s 11 of the J & K Arbitration and Conciliation Act, 1997 (for brevity the Act)

with a prayer that in view of clause 54 of the agreement dated 17.12.1986 the matter was required to be referred to a Bench of two Arbitrators,

one to be nominated by the government and the other to be nominated by the contractor. Few facts may first be noticed:

The petitioner was allotted the contract for construction of Mini Tunnel at Mamer vide allotment Order No. USHP-1/CE/34-works/1986 dated

21.10.1986 and the date for completion of the contract work was 31.10.1987. The petitioner claimed that on account of acts of omissions and

commissions on the part of the department, the work could not be completed in time and as such the petitioner claimed escalation in rates. After

submitting his claims to the department the petitioner served notice dated 03.01.2003 requesting the respondents to appoint an arbitrator in terms

of the agreement. Subsequently the petitioner approached this Court on 21.08.2006 requesting for appointment of arbitrator u/s 11 of the Act.

This Court vide order dated 12.03.2008 appointed S/Shri Jatinder Bakshi, Civil Engineer (retired) as one of the arbitrators nominated by the

petitioner and Mr. Nazir Ahmad Mir (Retired Chief Engineer UEED) as nominated by the government. The order dated 12.03.2008 reads as

under:-

In terms of Clause-54 of the agreement in case a dispute arises between the parties the same is to be referred to the Arbitrators. Two Arbitrators

are to be nominated one by the Department and other by the Contractor.

Petitioner has already given the name of one Mr. Jatinder Bakshi, Civil Engineer (Retired) as his Arbitrator.

In compliance to the order dated 4.10.2007 respondents have furnished the list of names to be appointed as Arbitrator in the case. Mr. M.A.

Beigh submits that Mr. Nazir Ahmad Mir R/O Rajbagh, Srinagar (Retired Chie Engineer (UEED) be appointed as their Arbitrator.

In view of the submissions made, Mr. Jatinder Bakshi, Civil Engineer (Retired) and Mr. Nazir Ahmad Mir R/O Rajbagh, Srinagar (Retired Chie

Engineer (UEED) are appointed as Arbitrators in the case and the matter is referred to them for arbitration. They shall give the award in

accordance with the rules within a period of three months from the date proceedings convene. In the first instance Rs. 30,000/- is fixed as their fee

in equal shares. Parties to pay the fee to the Arbitrators within two weeks.

List after three months.

The arbitrators entered upon the arbitration and associated one Mr. A.M. Untoo, Retired Chie Engineer, to act as an umpire with the consensus

of the parties and with their consent. The award was filed by one of the Arbitrators, namely, Nazir Ahmad Mir (Retired Chief Engineer) who

appeared before the Registry of this Court on 27.12.2010 and presented the award duly signed by both the arbitrators along with the umpire. The

award was taken on file and matter was listed for passing appropriate orders.

Both the learned counsel are present and on a specific question asked by the Court with regard to filing of objections, both the learned counsel

have stated that they do not wish to file any objection to the award. Even otherwise no serious lacuna is discernible from the award or the arbitral

proceedings. Therefore, the award dated 27.12.2010 deserves to be made Rule of the Court. Accordingly the award dated 27.12.2010 is made

Rule of the Court. Registry to draw decree in terms of the award.

This application has been filed by Mr. Nazir Ahmad Mir, the Arbitrator on behalf of himself and Shri Jatinder Bakshi, seeking directions to fix

their fee or in the alternative as an interim measure praying for directions to the respondents to make payment of their fee for conducting the arbitral

proceedings.

It is appropriate to mention that vide order dated 12.03.2008 a sum of Rs. 30,000/- was fixed as fee of the arbitrators in equal shares at the

first instance. According to the averments made in the application, several arbitral hearings have been held at Srinagar as well as at Jammu,

therefore, another installment of Rs. 30,000/- is also claimed and a separate fee is also prayed to be paid to the umpire.

Keeping in view all the aforesaid facts I am of the view that a sum of Rs. 30,000/- to each of the Arbitrators and the Umpire should be paid

minus the amount already paid. The balance amount be paid by both the parties to the extent of 50% each within a period of one month from

today and compliance report be filed by both the parties before the Registry of this Court.

Application stands disposed of.