Early Times Report
Jammu, June 25: In a significant order Justice Rahul Bharti (Vacation Judge) of the High Court of Jammu & Kashmir and Ladakh (Jammu Wing) has directed Managing Director, Jammu and Kashmir Medical Supplies Corporation Ltd. (JKMSCL) not to give effect to the contract awarded to M/s Tiranga Security and Manpower Solutions through its Authorised Signatory Narinder Gupta R/o Plot No.423, JLPL, Industrial Park, Sector-82, Mohali, Chandigarh till next date of hearing. The court further directed that the Managing Director, JKMSCL shall be entitled to hire the manpower of the petitioner on the terms and condition of it being L1 in case of contingency. The court further said that this order is, however, subject to the objections from the other side.
These directions were passed in an Arbitration Appeal (AA No.09/2024) preferred by M/s Unique Sanitation and Outsourcing Service through its Managing Director, Ram Sharma challenging the order passed by the court of Principal District Judge, Jammu with powers of commercial court rejecting the application filed by the petitioner under Section 9 of the Arbitration and Conciliation Act, 1996.
Advocate Arshad Majid Malik, appearing for the appellant vehemently argued that the appellant participated in the tendering process initiated by JKMSCL and after completion of the tendering process the appellant was declared L1 and rate contract was offered to the appellant and all of a sudden the Managing Director, JKMSCL vide order No.16-JKMSCL of 2024 dated 04-05-2024 by invoking section II Eligible Criteria Para 5 (iii) came to declare appellant’s rate contract dated 13-02-2024 as void ab-initio.
Advocate A. M. Malik, vociferously argued that on the very same day i.e. 04-05-2024, the Managing Director, JKMSCL approached L2 i.e. M/s Tiranga Security and Manpower Solutions through its Authorised Signatory Narinder Gupta R/o Plot No.423, JLPL, Industrial Park, Sector-82, Mohali, Chandigarh offering him the contract of providing manpower services at L1 rates.
While referring to the order No.16-JKMSCL of 2024 dated 04-05-2024, Advocate A. M. Malik invited the intention of the court that without hearing the appellant who was executing the contract being the successful bidder, the JKMSCL with a view to confer undue benefit to M/s Tiranga Security and Manpower Solutions through its Authorised Signatory Narinder Gupta R/o Plot No.423, JLPL, Industrial Park, Sector-82, Mohali, Chandigarh thereby causing grave prejudice to the appellant, who underwent the tendering process successfully.
After considering the submissions of Advocate A. M. Malik appearing for the appellant, the Vacations Judge Justice Rahul Bharti observed that prima-facie it appears that the things were done in a post-haste-manner particularly when this court examines that with the same stroke of pen the declaration of the rate contract with the petitioner as ‘null and void’ is taking place and on the same very day L2 is being approached by the Managing Director, JKMSCL to come forward and take over the contract as if the L2 was waiting at the door step of the Managing Director, JKMSCL.
Justice Rahul Bharti further observed that the petitioner is aggrieved of the fact that the court below has not considered all the facts and circumstances of the case to grant interim measure in favour of the petitioner as solicited in the application under Section 9 of the Arbitration and Conciliation Act, 1996.
At this stage the court issued notice to the official respondents including Managing Director, JKMSCL which was accepted by AAG, Raman Sharma.
The court also issued notice to L2 i.e. M/s Tiranga Security and Manpower Solutions through its Authorised Signatory Narinder Gupta R/o Plot No.423, JLPL, Industrial Park, Sector-82, Mohali, Chandigarh as well as to Qazi Qammar, Deputy General Manager, JKMSCL, Bemina, Srinagar. All the respondents were granted time to file objections by or before 01-07-2024.
The court further directed the registry to list this matter on 03-07-2024 and in the meantime directed Managing Director, Jammu and Kashmir Medical Supplies Corporation Ltd. (JKMSCL) not to give effect to the contract awarded to M/s Tiranga Security and Manpower Solutions through its Authorised Signatory Narinder Gupta R/o Plot No.423, JLPL, Industrial Park, Sector-82, Mohali, Chandigarh till next date of hearing.
The court further directed that the Managing Director, JKMSCL shall be entitled to hire the manpower of the petitioner on the terms and conditions of it being L1 in case of contingency.
The court further said that this order is, however, subject to objections from the other side. JNF
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