NAVVNEET DUBEY
SRINAGAR: Even though arbitration awards amounting to around Rs 248 crore are currently under challenge in various courts, the Jammu Kashmir government has not paid any of them so far. The data was revealed in the recently concluded Legislative Assembly session in response to a query tabled by Pawan Kumar Gupta regarding arbitration cases.
As per government data, 130 arbitration cases have been reported in different departments over the past two years, with the Jal Shakti Department leading with 26 cases, followed by Power Development (18), Public Works (R&B) (17), and Housing and Urban Development (14). Departments such as Planning and Monitoring, Health and Medical Education, and Rural Development also reported multiple cases, while several others, including Tourism, Labour, and Culture, had none.
The official figures further said that a total of 18 arbitration awards were made “Rule of Court” under the now-repealed Jammu and Kashmir Arbitration Act, 1945, with a combined value of Rs 248 crore. None of these awards have been paid, as each has been legally challenged by the government.
The Department of Law, Justice and Parliamentary Affairs clarified that since the enforcement of the Arbitration and Conciliation Act, 1996, all arbitral awards are deemed decrees of a civil court and can be enforced directly, eliminating the earlier requirement of making them a “Rule of Court.”
It added that Every award under the Arbitrati Conciliation Act, 1996 by the Arbitrator against the Government of Jammu and Kashmir has been challenged under the relevant Provisions of the law and there is no uniform reason for passing of awards and these awards have been passed considering the facts and circumstances involved in each case.
On the subsequent query that whether responsibility has been fixed on delinquent officers responsible for such negligence or collusion allowing such huge losses to the exchequer, the department said it has and again advised the concerned departments to take strict action against the officers/officials found lackadaisical, negligent and whose actions have proven to be detrimental to the interest of the time Government.
Given to the involvement of the considerable financial stakes of the Government of Jammu and Kashmir in arbitration matters and to prevent any loss to the State exchequer, the Government of Jammu and Kashmir has taken a number of proactive steps in order to strengthen the defenses advanced in said arbitration matters’ A dedicated “Arbitration Cell” has been constituted in terms of Government Order No. 1121-JK(GAD) of 2020 dated 17.122020 in the Department of Law, Justice and Parliamentary Affairs for dealing with the arbitration matters from inception of contract to the culmination of the arbitration proceedings, so as to ensure that arbitration matters are taken care in a centralized manner.
The Cell is entrusted with the functions of the examination and vetting of all the Contracts / Agreements / MOUS etc. containing the Arbitration Clause executed for and on behalf of the Government of Jammu and Kashmir’ Besides, the Cell is mandated to monitor the arbitration proceedings in Arbitral Tribunals and ensure filing of timely pleadings in the Tribunals and Courts having supervisory jurisdictions. Besides’ the Government has been issuing the effective directives, guidelines and Circulars in this regard from time to time to arrest any laxity in this regard and timely steps are taken for assailing of the Arbitral awards before the Courts of competent jurisdiction in terms of the provisions of the Arbitration and Conciliation Act, 1996 and the Commercial Courts Act’ 2015 The Department of Law, Justice and Parliamentary Affairs has issued a detailed and elaborate Circular No. 09-JK (LD) of 2024 daled 03.07.2024 for strict adherence at various stages of arbitrations with a view to arrest delays and for taking of requisite measures in case of adverse awards/orders and also for fixing of responsibilities of the officers/offlcials involved in any dereliction of duties in this regard”, the reply added.
