Ms. Swadha Gupta, Ms. Shubhangi Singh, Ms. Jasnoor Kaur Suri, Advs v. PWD, GNCTD

$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 955/2025 MULTI-TECH CONSTRUCTION COMPANY (THROUGH SH RAVINDER GUPTA AUTHORISED REPRESENTATIVE OF THE PETITIONER FIRM) .....Petitioner Through: Ms. Swadha Gupta, Ms. Shubhangi Singh, Ms. Jasnoor Kaur Suri, Advs. versus PWD, GNCTD (THROUGH MR. SANTOSH KUMAR TRIPATHI, ADD. STANDING COUNSEL (CIVIL)) .....Respondent Through: Ms. Rachita Garg, Mr. Agam Rajput, Advs. CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 14.10.2025 1. This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator to adjudicate the disputes between the parties. 2. The facts are that the petitioner was awarded work of construction of additional SPS classrooms in various school under Priority-II. SH: C/o 148 Nos. SPS type class rooms, libraries, toilets and Laboratories etc. including internal and external water supply, sanitary installation, electrical installation, firefighting system and development of site etc. at Government schools SKV No.2 C-Block Janakpuri, GGSSS No.2 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 25/10/2025 at 14:12:52 A-Block Janakpuri, SV (Co.Ed.) L-Block, Hari Nagar, GBSSS Site-2 Clock Tower Hari, Nagar New Delhi vide Letter of Acceptance (“LOA”) dated 28.11.2018. Subsequently, the parties entered into an Agreement bearing No. 11/EE/EDU(M)WEST/2018-2019 for execution of the said work. 3. The said Agreement contains an arbitration clause being Clause No. 25(ii) of General Conditions of Contract, which reads as under:- “CLAUSE 25 xxxxxxxx (ii) Except where the decision has become final, binding and conclusive in terms of Sub Para (i) above, disputes or difference shall be referred for adjudication through arbitration by a sole arbitrator appointed by the Chief Engineer, CPWD, in charge of the work or if there be no Chief Engineer, the Additional Director General of the concerned region of CPWD or if there be no Additional Director General, the Director General, CPWD. If the arbitrator so appointed is unable or unwilling to act or resigns his appointment or vacates his office due to any reason whatsoever, another sole arbitrator shall be appointed in the manner aforesaid. Such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor. It is a term of this contract that the party invoking arbitration shall give a list of disputes with amounts claimed in respect of each such dispute along with the 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 25/10/2025 at 14:12:52 notice for appointment of arbitrator and giving reference to the rejection by the Chief Engineer of the appeal. It is also a term of this contract that no person, other than a person appointed by such Chief Engineer CPWD or Additional Director General or Director General, CPWD, as aforesaid, should act as arbitrator and if for any reason that is not possible, the matter shall not be referred to arbitration at all. It is also a term of this contract that if the contractor does not make any demand for appointment of arbitrator in respect of any claims in writing as aforesaid within 120 days of receiving the intimation from the Engineer-in-charge that the final bill is ready for payment, the claim of the contractor shall be deemed to have been waived and absolutely barred and the Government shall be discharged and released of all liabilities under the contract in respect of these claims. The arbitration shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) or any statutory modifications or re-enactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceeding under this clause. It is also a term of this contract that the arbitrator shall adjudicate on only such disputes as are referred to him by the appointing authority and give separate award against 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 25/10/2025 at 14:12:52 each dispute and claim referred to him and in all cases where the total amount of the claims by any party exceeds Rs. 1,00,000/-, the arbitrator shall give reasons for the award. It is also a term of the contract that if any fees are payable to the arbitrator, these shall be paid equally by both the parties. It is also a term of the contract that the arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties calling them to submit their statement of claims and counter statement of claims. The venue of the arbitration shall be such place as may be fixed by the arbitrator in his sole discretion. The fees, if any, of the arbitrator shall, if required to be paid before the award is made and published, be paid half and half by each of the parties. The cost of the reference and of the award (including the fees, if any, of the arbitrator) shall be in the discretion of the arbitrator who may direct to any by whom and in what manner, such costs or any part thereof shall be paid and fix or settle the amount of costs to be so paid.” 4. The amended Clause No. 25(ii) of General Conditions of Contract reads as under: “CLAUSE 25 xxxxxxxx (ii) Disputes or difference shall be referred for adjudication through arbitration by a Tribunal having sole 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 25/10/2025 at 14:12:52 arbitrator where Tendered amount is Rs. 100 Crore or less. Where Tendered Value is more than Rs. 100 Crore, Tribunal shall consist of three Arbitrators as above. The requirements of the Arbitration and Conciliation Act, 1996 (26 of 1996) and any further statutory modifications or reenactment thereof and the rules made there under and for the time being in force shall be applicable. It is a term of this contract that the party invoking arbitration shall give a list of disputes with amounts claimed, if any, in respect of each such dispute along with the notice for appointment of arbitrator and giving reference to the decision of the DRC. It is also a term of this contract that any member of the Arbitration Tribunal shall be a Graduate Engineer with experience in handling public works engineering contracts at a level not lower than Chief Engineer (Joint Secretary level of Government of India). This shall be treated as a mandatory qualification to the appointment as arbitrator. Parties, before or at the time of appointment of Arbitral Tribunal may agree in writing for fast track arbitration as per the Arbitration and Conciliation Act, 1996 (26 of 1996) as amended in 2015. Subject to provision in the Arbitration and Conciliation Act, 1996 (26 of 1996) as amended in 2015 whereby the counter claims if any can be directly filed before the arbitrator without any requirement of reference by the 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 25/10/2025 at 14:12:52 appointing authority, the arbitrator shall adjudicate on only such disputes as are referred to him by the appointing authority and give separate award against each dispute and claim referred to him and in all cases where the total amount of the claims by any party exceeds Rs. 1,00,000/-, the arbitrator shall give reasons for the award. It is also a term of the contract that if any fees are payable to the arbitrator, these shall be paid as per the Act. The place of arbitration shall be as mentioned in Schedule F. In case there is no mention of place of arbitration, the arbitral tribunal shall determine the place of arbitration. The venue of the arbitration shall be such place as may be fixed by the Arbitral Tribunal in consultation with both the parties. Failing any such agreement, then the Arbitral Tribunal shall decide the venue. 5. Since disputes arose between the parties, the petitioner invoked arbitration vide legal notice dated 03.10.2024 and thereafter, filed the present petition. 6. Mr. Rajput, learned counsel appears on behalf of the respondent and states that he has no objection to the present petition being allowed. 7. I am satisfied that there is a valid arbitration clause between the parties and the disputes need to be adjudicated by way of arbitral mechanism. 8. For the said reasons, the petition is allowed and the following directions are issued:- i) Ms. Justice Rekha Palli (Retd. Judge Delhi High Court) (Mob. 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 25/10/2025 at 14:12:52 No.9810012120) 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. 9. The present petition is disposed of in the aforesaid terms. JASMEET SINGH, J OCTOBER 14, 2025/sp