Unknown vs Union Of India And Another
2024 Latest Caselaw 783 UK

Uttarakhand High Court

Unknown vs Union Of India And Another on 26 April, 2024

     HIGH COURT OF UTTARAKHAND AT
               NAINITAL
       THE HON'BLE CHIEF JUSTICE MS. RITU BAHRI

                            26th April, 2024
 ARBITRATION APPLICATION No.36 of 2023

Hillways Construction Company Private Limited
                                                        .....Applicant

                                 Versus

Union of India and another                            ........Respondents

Counsel for the applicant : Mr. Siddhartha Singh, learned counsel.

Counsel for the Union of Mr. V.K. Kapurwan, learned CGSC, India/respondents with Mr. Azmeen Sheikh, learned counsel.

Judgment: (per Ms. Ritu Bahri, C.J.) Union of India/respondents have filed the review application (MCC No.4/2023) against the order dated 04.08.2023.

2. In the order dated 04.08.2023, after hearing learned counsel for the Union of India, it transpires that initially the Letter of Intent, was given to the applicant on 21.03.2022, and pursuant to the Letter of Intent, he had deposited the security amount of Rs.1,04,78,230/- by performance bank guarantee. Subsequently, this contract was cancelled on 23.07.2022, and the work has been allotted to some other contractor, and as on date, the road has been constructed.

3. The grievance of the applicant in the arbitration application was that for four months, after depositing the bank guarantee, he had deployed his staff and machinery on the spot, and he had no occasion to believe that this contract will be cancelled after four months, and on this dispute, he has suffered further consequential damages caused to him. The order dated 04.08.2023, was rightly passed by appointing Mr. Justice Pradeep Nandrajog, Retired Chief Justice, High Court of Bombay, as an Arbitrator.

4. Learned counsel for the Union of India/review applicant has not able to dispute the fact that for four months after accepting the bank guarantee after 28.03.2022, no steps were taken by the respondents to cancel the contract till 23.07.2022. Hence, for this gap of four months, the petitioner has a right to claim damages, and the Arbitrator was rightly appointed. No ground is made out to interfere in the review application. Accordingly, the same is dismissed.

___________________________ Ritu Bahri, CJ.

Dt: 26th April, 2024 NR/