Excelsior Correspondent
JAMMU, June 25: High Court of Jammu & Kashmir and Ladakh 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 of Chandigarh till next date of hearing.
The High Court has 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 and this order shall be subject to the objections from the other side.
These directions were passed in an Arbitration Appeal 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.
On the very same day—04-05-2024, the Managing Director, JKMSCL approached L2 M/s Tiranga Security and Manpower Solutions through its authorised signatory Narinder Gupta offering him the contract of providing manpower services at L1 rates.
“Without hearing the appellant who was executing the contract being the successful bidder, the JKMSCL conferred undue benefit to M/s Tiranga Security and Manpower Solutions thereby causing grave prejudice to the appellant, who underwent the tendering process successfully”, Advocate Malik said.
After considering the submissions of Advocate A M Malik appearing for the appellant, the Vacations Judge Justice Rahul Bharti observed, “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, “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”. Accordingly, High 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— M/s Tiranga Security and Manpower Solutions 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) shall not to give effect to the contract awarded to M/s Tiranga Security and Manpower Solutions till next date of hearing.
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