MANU/JK/0419/2018

True Court CopyTM

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR

A.A. Nos. 07, 04 and 06/2016

Decided On: 04.06.2018

Appellants: Siemens Ltd. and Ors. Vs. Respondent: SKIMS

Hon'ble Judges/Coram:
Ali Mohd. Magrey

ORDER

Ali Mohd. Magrey, J.

1. Since similar question of facts and law are raised in these applications, filed under Section 11(6) of the J & K Arbitration and Conciliation Act, 1997 (hereinafter referred to as "The Act"), coupled with similar relief sought for, as such, it shall be appropriate to decide all these applications by way of a common order.

2. The applicants have filed these applications before this Court for the appointment of a sole Arbitrator under Section 11(6) of the Act, pursuant to the 'Arbitration Clause' between the parties contained in the 'Contract Agreement'-Supply Order No. SIMS 324 13 2006 (Eq)-1690-94 dated 20th of July, 2006, issued by the Respondent to the applicants for the supply/installation/testing/commissioning and handing over of a High Frequency Digital X-Ray with Image Intensifier (the X-Ray Machine).

3. The facts leading to the filing of these applications, briefly and as stated by the applicants, are that the applicants herein are leading suppliers of medical imaging equipment, e.g. computed tomography and magnetic resonance imaging systems-and leaders in laboratory diagnostics as well as clinical IT. The respondent-Sher-i-Kashmir Institute of Medical Sciences (SKIMS), is a deemed University and a medical Centre located in the State of Jammu and Kashmir. On 10th of March, 2006, the respondent-SKIMS floated a tender for the supply/installation/testing and commissioning of, inter alia, a Digital High Frequency 500,800 and 1000 MA X-ray machine with image intensifier. The applicants submitted their bid in relation to the X-Ray Machine on 11th of May, 2006, which was declared successful and, accordingly, the contract for the supply/installation/testing and commissioning of the aforesaid equipment was awarded in favour of the applicants by way of supply order No. SIMS 324 13 2006(Eq) 1690-94 dated 20th of July, 2006. The applicants successfully completed the allotted works in terms of the supply order aforesaid and, as of June, 2007, i.e. the date when the equipment was handed over to the respondent-SKIMS, almost 400 patients had been scanned on the X-Ray Machine on a trial basis. It is stated that despite the applicants having completed their obligations under the supply order, the respondent-SKIMS failed to issue a Civil Completion Report, which constrained the applicants to raise an invoice dated 15th of October, 2009, in relation to the payments outstanding as regards the works undertaken by the applicants under the supply order for an amount of Rs. 4,77,460/-. On 21st of October, 2009, the applicants represented to the respondent-SKIMS to inspect the site where the equipment had been installed so that outstanding payments could be released in their favour. Thereafter, the applicants submitted several letters before the respondent-SKIMS requesting therein that the above outstanding amounts be released. On 20th of November, 2012, a site inspection of the Civil, Electrical and Mechanical works was carried out on part of the respondent-SKIMS, however, they continued to fail to release the outstanding amounts payable to the applicants. In a meeting held on 18th of June, 2013, the Executive Engineers of the respondent-SKIMS stated their inability to verify the bills raised by the applicants on the pretext that the work was executed long back, as a result whereof, the respondent-SKIMS, thereafter, decided to send the bills of works to the then Engineers of the respondent-SKIMS for verification and for taking up the matter with the Director Finance. Thereafter, the respondent-SKIMS made attempts to contact its former Executive Engineers to verify the claim of the applicants, but failed to ultimately verify the same. Finally, as stated, on 13th of December, 2013, the respondent-SKIMS formed a committee to check/verify the work done by the applicants and their pending claims in respect thereto. At a meeting held on 4th of March, 2014, Mr. G.M. Bhat, the forme........