*Seeks Govt response on penalty, recovery notices
Excelsior Correspondent
JAMMU, Feb 12: The High Court of Jammu & Kashmir and Ladakh has taken serious note of an inordinate four-year delay in deciding a statutory appeal related to penalties imposed under the Himayat Skill Development Scheme, terming the prolonged pendency “very shocking” and directing authorities to explain the reasons behind the delay.
Hearing a writ petition filed by Eduspark International Pvt Ltd, Justice Wasim Sadiq Nargal issued notices to the respondents and sought detailed replies primarily on the maintainability of the petition, given the presence of an arbitration clause in the Memorandum of Understanding (MoU) governing the contractual relationship between the parties.
The petitioner challenged a penalty notice of about Rs 5.65 lakh and a recovery notice exceeding Rs 2.82 crore with interest, issued by the Himayat Mission Management Unit (HMMU) in November 2025. The company contends that the notices are arbitrary, non-speaking and issued in violation of principles of natural justice and has sought quashing of the communications along with a declaration that no default was committed.
The dispute arises from implementation of a project under the Himayat scheme, a centrally funded initiative under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana aimed at skilling and placing rural youth in sustainable employment.
During preliminary hearings, the court raised a key legal question—whether a writ petition is maintainable when the underlying MoU contains an arbitration clause for dispute resolution. The petitioner argued that the clause does not constitute a valid arbitration agreement and that writ jurisdiction can be invoked due to alleged arbitrariness and violation of natural justice.
The court directed the respondents to file their response specifically on the issue of maintainability before the case proceeds further on merits.
A major concern flagged by the High Curt was the non-disposal of an appeal filed in May 2022 against earlier closure of the project and penalty imposition. Observing that the appeal has remained pending for more than four years, the High Court said the situation was “very shocking” and sought an affidavit from the authorities explaining the reasons for such delay and producing the relevant appellate records.
The petitioner had entered into a consortium agreement in 2018 to train 1000 candidates under a time-bound project governed by an MoU with HMMU. After the consortium partner exited in 2021, the project continued solely with the petitioner, though no revised MoU was executed. The agreement contained provisions relating to arbitration, penalties and recovery of dues, which now form the core of the legal dispute.
The High Court issued notice to the respondents and granted two weeks’ time to file replies limited to maintainability and the reasons for delay in deciding the appeal. The respondents have also been directed to place the appellate record before the court. Interim relief has been deferred for the time being.
The matter has been listed for further hearing on March 2, 2026.
Senior Advocate Rahul Pant with Advocates Vikram B Trivedi, Sunil Tilok Chandani and Rahul Sharma appeared for the petitioner while as Additional Advocate General Raman Sharma appeared for the Union of India and Others.
The post HC flags shocking 4 yr delay in deciding appeal in Himayat Scheme case appeared first on Daily Excelsior.