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Judgment
Sanjay Dhar, J
The petitioner has moved the present application under Section 9 of the Arbitration and Conciliation Act, 1996 seeking quashment of the Communication bearing No. 180853/672/E8 dated 12.06.2023 issued by respondent No. 2 whereby contract for execution of Provision of Technical and OTM Accommodation at Thasgam (Drass) has been terminated at the risk and cost of the petitioner. Further order restraining the respondents from allotting the work to any other person or initiating any recovery proceedings against the petitioner has also been sought by way of interim measure.
Learned Senior Counsel appearing for the petitioner has submitted that by virtue of Communication dated 24.05.2023 issued by respondent No. 2, the date of completion of the contract was extended up to 15th June 2023 but before the expiry of the said date, the said respondent issued the impugned Communication dated 12.06.2023 which goes on to show the arbitrariness on the part of the respondents. It has been submitted that the contract could not be executed within the initial stipulated time on account of action and inaction attributable to the respondents and not attributable to the petitioner. Therefore, the action of the respondents terminating the petitioner’s contract is not sustainable in law. According to learned Senior Counsel, the petitioner is willing to execute the balance work provided the respondents clear the pending bills.
Issue notice to the respondents.
Mr. T. M. Shamsi, learned DSGI enters appearance and accepts notice on behalf of the respondents. He seeks and is granted four weeks time to file reply to the petition.
In the meantime, the respondents are restrained from making any recovery of damages etc from the petitioner in respect of contract in question. It is further provided that the respondents shall negotiate with the petitioner as per representation made by it so that the balance work is executed as per the terms and the conditions as may be agreed between the parties.
List along with AA No. 6/2023 on 28.08.2023.