ARB.P./750/2025 of M/S GYAN CHAND Vs GOVERNMENT OF NCT OF DELHI

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*IN THE HIGH COURT OF DELHI AT NEW DELHI+ARB.P. 750/2025M/S GYAN CHAND

.....PetitionerThrough:Mr. Abhishek Pandey, Mr. RameshPandey, Advs.Pandey, Advs.

versus

GOVERNMENT OF NCT OF DELHI

.....Respondent

Through:Mr. Abhinav Singh, Mr. RishabhYadav, Advs.Yadav, Advs.

+ARB.P. 751/2025M/S GYAN CHANDM/S GYAN CHAND

.....Petitioner

Through:Mr. Abhishek Pandey, Mr. RameshPandey, Advs.Pandey, Advs.versus

GOVERNMENT OF NCT OF DELHI

.....Respondent

Through:Mr. Abhinav Singh, Mr. RishabhYadav, Advs.Yadav, Advs.

CORAM:

HON'BLE MR. JUSTICE JASMEET SINGHO R R

%11.07.2025

1.These are petitions filed under Section 11 of the Arbitration andConciliation Act, 1996 seeking appointment of an Arbitrator foradjudication of disputes between the parties.Conciliation Act, 1996 seeking appointment of an Arbitrator foradjudication of disputes between the parties.

2.The respondent invited tenders for worker development area nearIncubation Centre at IGDTUW, Kashmere Gate under Sub-division-II/SRD-I, New Delhi.Incubation Centre at IGDTUW, Kashmere Gate under Sub-division-II/SRD-I, New Delhi.

3.The petitioner was declared successful bidder and was awarded

contractvide agreementNo. 86/EE/SRDP-l/PWD/2022-23andagreement No. 92/EE/SRDP-l/PWD/2022-23 on 12.01.2023.

4.The agreement was to be governed by the GCC terms and moreparticularly clause 25.2 which reads as under:-

“Clause 25. . . . .

(i). . . . .

(ii)Disputes or difference shall be referred for adjudicationthrough arbitration by Tribunal having sole arbitrator where claimedamount is Rs. 20 Crore or less. Where claimed Value is more than Rs.20 Crore, Tribunal shall consist of three Arbitrators as above. Therequirements of the Arbitration and Conciliation Act, 1996 (26 of1996) and any further statutory modification or re-enactment thereofand the rules made there under and for the time being in force shall beapplicable.

It is term of this contract that the party invoking arbitration shall givea list of disputes with amounts claimed, if any, in respect of each suchdispute along with the notice for appointment of arbitrator and givingreference to the decision of the ADG/ SDG on the finding /recommendation of DRC.

It is also term of this contract that member(s) of the ArbitrationTribunal shall be Graduate Engineer with experience in handlingpublic works engineering contracts, and further he shall have earlierworked at level not lower than Chief Engineer/ equivalent (i.e. JointSecretary level of Government of India). This shall be treated as amandatory qualification to be appointed as arbitrator.

Parties, before or at the time of appointment of Arbitral Tribunal mayagree in writing for fast track arbitration as per the Arbitration andConciliation Act, 1996 (26 of 1996) as amended in 2015.

Subject to provision in the Arbitration and Conciliation Act, 1996 (26of 1996) as amended in 2015 whereby the counter claims if any can bedirectly filed before the arbitrator without any requirement of reference

by the appointing authority. The arbitrator shall adjudicate on onlysuch disputes as are referred to him by the appointing authority andgive separate award against each dispute and claim referred to himand in all cases where the total amount of the claims by any partyexceeds Rs. 1,00,000/-, the arbitrator shall give reasons for the award.It is also term of the contract that fees payable to arbitral tribunalshallbeasapprovedbyDG,CPWD,OMissuedvideno.2/2006/SE(TLC)/CSQ/137dated19-11-2019(oritslatestamendment as approved by DG, CPWD). This fee shall be sharedequally by parties.

The place of arbitration shall be as mentioned in Schedule F. In casethere is no mention of place of arbitration, the arbitral tribunal shalldetermine the place of arbitration.

The venue of the arbitration shall be such place as may be fixed by theArbitral Tribunal in consultation with both the parties. Failing anysuch agreement, then the Arbitral Tribunal shall decide the venue.”

5.Since the respondent failed to make the payment, the petitioner invokedarbitration vide legal notice dated 23.04.2025.arbitration vide legal notice dated 23.04.2025.

6.Mr. Singh, learned counsel for the respondent states that the respondentis processing the final bill of the petitioner. Since the payments are stilloutstanding and the petitioner presses the petition, I am of the view thatthere are disputes between the parties.is processing the final bill of the petitioner. Since the payments are stilloutstanding and the petitioner presses the petition, I am of the view thatthere are disputes between the parties.

7.For the said reasons, the petitions are allowed.

8.Hence, the petition is allowed and the following directions are issued:-

i)Ms.Tejaswani,Advocate(Mob.No.[REDACTED])isappointed as Sole Arbitrator to adjudicate the disputesbetween the parties.appointed as Sole Arbitrator to adjudicate the disputesbetween the parties.

ii)The arbitration will be held under the aegis and rules of theDelhi International Arbitration Centre, Delhi High Court, SherDelhi 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 ofDIAC (Administrative Cost and Arbitrators’ Fees) Rules,2018.DIAC (Administrative Cost and Arbitrators’ Fees) Rules,2018.

iv)The learned Arbitrator is requested to furnish declaration interms of Section 12 of the Act prior to entering into thereference.terms of Section 12 of the Act prior to entering into thereference.

v)It is made clear that all the rights and contentions of theparties, including as to the arbitrability of any of the claim, anyother preliminary objection, as well as claims/counter-claimsand merits of the dispute of either of the parties, are left openfor adjudication by the learned arbitrator.parties, including as to the arbitrability of any of the claim, anyother preliminary objection, as well as claims/counter-claimsand merits of the dispute of either of the parties, are left openfor adjudication by the learned arbitrator.

9.The learned arbitrator will not enter reference for period of 4 weeksand in case the entire payment is made to the satisfaction of thepetitioner, the learned arbitrator need not take any further steps.and in case the entire payment is made to the satisfaction of thepetitioner, the learned arbitrator need not take any further steps.

10. The present petition is disposed of in the aforesaid terms.

JULY 11, 2025 / (MS)

JASMEET SINGH, J