Requirement to Refer the Claims to Dispute Adjudication Board (DAB) is Mandatory: Jammu & Kashmir and Ladakh HC Introduction
According to the GCC of FIDIC Contracts, the requirement to refer the dispute to DAB is mandatory,
according to the High Court of Jammu & Kashmir and Ladakh. Failure to comply with the provision
renders the dispute non-arbitrable.
A significant ruling from the High Court of Jammu and Kashmir and Ladakh recently emphasised the
necessity of submitting claims to the Dispute Adjudication Board (DAB). The significance of
adhering to established dispute resolution procedures is emphasised by the fact that this decision has
significant repercussions for projects in the region that involve construction and infrastructure. We
will look at the case’s background, the court’s decision, and how it affects construction projects in
Jammu and Kashmir, and Ladakh in this article.
Background
Conflicts and disagreements are common on construction projects, which can derail project timelines
and necessitate costly litigation. The construction industry frequently makes use of the Dispute
Adjudication Board (DAB) as a well-known dispute resolution mechanism to deal with these issues.
The Touch gives a free and fair-minded stage where gatherings can look for a goal, keeping away
from extensive court fights.
In a new case, the High Court of Jammu and Kashmir and Ladakh heard a question including a
development organization that had neglected to allude its cases to the Spot, as specified in the
agreement understanding. The business argued that the DAB referral was merely a directory provision
and not required. The court, on the other hand, rejected this interpretation, pointing out that the
contractual provisions explicitly required that the dispute be referred to the DAB for resolution.
The Court’s Ruling
The requirement to refer claims to the DAB is, in fact, mandatory, according to the High Court of
Jammu and Kashmir and Ladakh. The court repeated that gatherings to an agreement should
rigorously stick to the concurred question goal systems, as these instruments structure the
underpinning of legally binding connections. By making a reference to the Spot required, the court
intended to build up the significance of legally binding commitments and cultivate fair and productive
debate goals.
The decision of the court indicates that the parties involved may face legal repercussions if they fail to
comply with the mandatory referral requirement to the DAB. It also emphasises the court’s position
on reducing the judicial system’s workload and speeding up the resolution process.
Implications
Construction projects in Jammu and Kashmir and Ladakh will be greatly affected by the ruling. It
serves as a reminder that the mandatory referral to the DAB and other dispute resolution provisions in
the contract must be diligently adhered to. To avoid potential legal consequences, construction
companies, contractors, and project owners must be well-versed in their contractual obligations.
The court wants to speed up the process and cut down on the costs of lengthy litigation by making the
DAB a mandatory step in dispute resolution. The Touch includes specific and experienced experts
who can evaluate claims and go with unbiased choices. In addition to reducing delays, this strategy
ensures that disputes are resolved by construction industry professionals, fostering equitable
outcomes.
Additionally, the ruling emphasises the significance of drafting contracts in a clear and precise
manner. The parties to a construction contract need to check that the language they use accurately
reflects their intentions regarding dispute resolution mechanisms. Contract language that is ambiguous
or inconsistent may result in disagreements and hinder the effectiveness of the chosen dispute-
resolution method.
Additionally, the decision emphasises the significance of raising awareness and education among all
construction industry stakeholders. Parties must become familiar with Jammu & Kashmir and
Ladakh’s local laws and regulations regarding dispute resolution. Construction professionals who are
aware of their rights and responsibilities are better able to resolve disputes and comply with the court’s
decision.
Conclusion
The recent decision of the High Court of Jammu & Kashmir and Ladakh confirms that construction
contracts must refer claims to the Dispute Adjudication Board (DAB). The importance of adhering to
contractual obligations and the need for effective dispute resolution is emphasized in this decision.
This ruling must be taken into consideration by construction companies and project stakeholders in
the region to ensure compliance with the mandatory referral requirement to the DAB. They can make
it possible for disputes to be resolved in a timely and equitable manner, resulting in improved project
outcomes and smoother construction processes.
