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2025 DAILYLAW 20127 (DEL)

M/S GIRDHARI LAL CONSTRUCTIONS PVT. LTD. v. UNION OF INDIA THROUGH DIRECTOR GENERAL MD. ACCN. PROJECT & ANR.

ARB.P./823/2025 · 2025-08-06

Jasmeet Singh

Public Interest Litigationbody2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

$~16 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 823/2025 M/S GIRDHARI LAL CONSTRUCTIONS PVT. LTD. .....Petitioner Through: Ms. Risha Mittal, Ms. Simran Mehrotra, Mr. Rohan Narula, Mr. Md. Adil Alam, Mr. Ishaan Singh, Adv. versus UNION OF INDIA THROUGH DIRECTOR GENERAL MD. ACCN. PROJECT & ANR. .....Respondent Through: Mr. Vivek Sharma, Sr. Adv. with Ms Prernaa Singh, Mr. Kapil Dev Yadav, Adv. CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 06.08.2025 1. This is a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of disputes between the parties arising out of Construction Contract bearing CA No. DG MAP/PH-II/DELHI WEST/PKG- 04/(R&C) OF 2014-15 dated 15.05.2014. 2. The brief facts of the case are that the respondent No. 1 issued a tender for “Completion of Balance Work for Construction of Residential Accommodation for Army Under Project Manager (West) Delhi.” The bid of the petitioner was accepted by the respondent No.1 and the above mentioned Contract was executed on 15.05.2014. 3. The Arbitration Clause is Clause 60 of the GCC which reads as under:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 11:47:44 “60. Arbitration. All disputes, between the parties to the contract (other than those for which the decision of the DG MAP or any other person is by the contract expressed to be final and binding) shall, after written notice by either party to the· Contract to the other of them, be referred to the sole arbitration of serving officer having degree in Engineering or equivalent or having passed Final/Direct Final Examination of Sub Division II of Institution of Surveyors (India) recognised by the Govt of India to be appointed by the Engineer-in-Chief, Army Headquarters, New Delhi or in his absence, the officer officiating as Engineer-in-Chief or Director General of Works if specifically delegated in writing by Engineer-in-Chief, Army Headquarters, New Delhi whose decision shall be final, conclusive and binding. The Arbitration shall be governed by Arbitration and Conciliation Act, 1996. Unless both parties agree in writing, such reference shall not take place until after the completion or alleged completion of the Works or termination or determination of the Contract under Condition Nos.49 and'50 hereof. Provided that in the event of abandonment of the works or cancellation of the Contract under Condition Nos. 46, 47 or 48 hereof, such reference shall not take place until alternative arrangements have been finalised by the Government to get the works completed by or through any other Contractor or Contractors or Agency or Agencies. Provided always that commencement or continuance of any arbitration proceeding hereunder or otherwise shall not in any manner militate against the Government's right of recovery from the contractor as provided in condition 57 hereof. If the Arbitrator so appointed resigns his appointment or vacates his office or is unable or unwilling to act due to any reason whatsoever, the authority appointing him may appoint a new Arbitrator to act in his place: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 11:47:44 The Arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties, asking them to submit to him their statement of case and pleading in defense. The Arbitrator may proceed with the arbitration exparte, if either party, in spite of a notice from the Arbitrator fails to take part in the proceedings. The Arbitrator shall give his reasoned award in writing on all matters referred to him and shall indicate his findings, along with sums awarded, separately on-each individual item of dispute. The venue of arbitration shall be such place or places as may be fixed by the Arbitrator in his discretion. The award of the Arbitrator shall be final and binding on both the parties to the Contract.” 4. Since there were disputes between the parties, the petitioner invoked arbitration vide legal notice dated 05.11.2024 and thereafter filed the present petition. 5. Mr. Sharma, learned senior counsel appears for the respondents, and states that a reply has been filed. However, the same is not on record and a copy has been handed over in Court today, which is taken on record. 6. In the reply, the respondents have stated that a retired Judge of the High Court or Supreme Court be appointed as a Sole Arbitrator to adjudicate the disputes. 7. For the said reasons, the petition is allowed and the following directions are issued:- i. Mr. Justice A. K. Chawla (Retired Judge) (Mob. No. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 11:47:44 9910384636) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties. ii. The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’). iii. The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018. iv. The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. v. It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator. vi. The parties shall approach the learned Arbitrator within two weeks from today. 8. The present petition is disposed of in the aforesaid terms. JASMEET SINGH, J AUGUST 6, 2025 / (MS) This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 11:47:44