LASSA JOO SHEIKH Vs. J AND K STATE FOREST CORPORATION

JUDGEMENT

(1.) Extraction operation of timber is alleged to have been allotted to the petitioner by the respondent No. 1 with respect to compartment No. 53-B Section 1 Bhadarwah Division in the year 1983-84. It is alleged that the work was finalised in the year 1986-87 and the forest handed over back to the respondent. The parties are alleged to have entered into formal agreements in respect of the said work. It is submitted that out of the billed amount 86% payment was made to the petitioner with the compromise that 10% of the amount would be paid to him as soon as amount is available. Withholding of 10% is alleged to be illegal which the respondents are bound to pay to the petitioner. The respondents are alleged to have illegally deducted 2% of the estimated cost of the works on account of income tax which according to the petitioner is far in excess of the amount due on the billed amount. It is further submitted that the respondents have made deductions on account of so called labour welfare fund at the rate of 2% of the estimated cost of the original works which definitely exceed the amount leviable. It is alleged that the difference and disputes existing between the parties directly relate to the agreement entered into between them. It is submitted that by virtue of clause 44 of the agreement, the differences or questions are to be referred to the sole arbitration of the Managing Director of the J and K State Forest Corporation. It is prayed that the respondents be directed to file the agreements in respect of all the works referred to in the petition and thereafter disputes and differences be referred to an arbitration of an independent arbitrator by the Court.

(2.) Despite opportunities objections have not been filed.

(3.) I have heard the learned counsel for the parties and perused the record.