Risha Mittal, Mr. Rohan Narula, Mr. Sanchit Gupta, Mr. Md. Adil Alam, Advocates v. UNION OF INDIA ANR

Through: Ms. Risha Mittal, Mr. Rohan Narula, Mr. Sanchit Gupta, Mr. Md. Adil Alam, Advocates versus UNION OF INDIA & ANR ......Respondents Through: Dr. Ramaswamy, CGSC, Mr Saurabh Kharwal, GP CORAM: HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD O R D E R 10.01.2025 The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 by the Petitioner seeking appointment of an Arbitrator to adjudicate upon the disputes which have arisen between the Parties under the Contract dated 09.05.2018 for construction of Atal Akshaya Urja Bhawan for Ministry of New and Renewable Energy at CGO Complex, Lodhi Road, New Delhi. 2. It is stated that the notice under Section 21 of the Arbitration and Conciliation Act, 1996 invoking arbitration was issued on 03.10.2024. Since the Respondents did not appoint the Arbitrator, the Petitioner has approached this Court by filing the instant petition. 3. Learned Counsel appearing on behalf of the Respondents points out that the Clause 25 of the Contract dated 09.05.2018 indicates the process of constitution of a Dispute Redressal Committee which is to be followed prior ARB.P. 30/2025 Page 1 of 5 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 24/01/2025 at 15:55:39 to invocation of the arbitration clause. 4. Heard the learned Counsel for the parties and perused the material on record. 5. Clause 25 of the Contract dated 09.05.2018 contains an Arbitration Clause, which reads as under:- “25. Except where otherwise provided in the contract, all questions and disputes relating to the meaning of the specifications, design, drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the cancellation, termination, completion or abandonment thereof shall be dealt with as mentioned hereinafter: (i) If the contractor considers any work demanded of him to be outside the requirements of the contract, or disputes any drawings, record or decision given in writing by the Engineer-in-Charge or if the Engineer In Charge considers any act or decision of the contractor on any matter in connection with or arising out of the contract or carrying out of the work, to be unacceptable and is disputed, such party shall promptly within 15 days of the arising of the disputes request the Chief Engineer or where there is no Chief Engineer, the Additional Director General (CE/ADG) who shall refer the disputes to Dispute Redressal Committee (DRC) within 15 days along with a list of disputes with amounts claimed if any in respect of each such dispute. The Dispute Redressal Committee (DRC) shall give the opposing party two weeks for a written response, and, give its decision within a period of 60 ARB.P. 30/2025 Page 2 of 5 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 24/01/2025 at 15:55:39 days extendable by 30 days by consent of both the parties from the receipt of reference from CE/ADG. The constitution of Dispute Redressal Committee (DRC) shall be as indicated in Schedule 'F'. Provided that no party shall be represented before the Dispute Redressal Committee by an advocate/legal counsel etc. If the Dispute Redressal Committee (DRC) fails to give its decision within the aforesaid period or any party is dissatisfied with the decision of Dispute Redressal Committee (DRC) or expiry of time limit given above, then either party may within a period of 3 0 days from the receipt of the decision of Dispute Redressal Committee (DRC), give notice to 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 (CE/ADG/DG) for appointment of arbitrator on prescribed proforma as per Appendix XV under Intimation to the other party. It is a . . . . invoking arbitration. The CE/ADG/DG shall in such case appoint the sole arbitrator or one of the three arbitrators as the case may be within 30 days of receipt of such a request .and refer such disputes to arbitration . . Wherever the Arbitral Tribunal consists of three Arbitrators, the contractor shall appoint one arbitrator. within 30 days of making request for arbitration or of receipt of request by Engineer-in-charge to 'CE/ADG/DG for appointment of arbitrator, as the case may be, and two appointed arbitrators shall appoint the third arbitrator who shall act as ..... (ii) Disputes or difference shall be referred for adjudication through arbitration by a Tribunal having sole arbitrator where Tendered amount is Rs. 100 Crore of less. Where Tendered value is more than Rs.100 Crore, Tribunal shall consist of ARB.P. 30/2025 Page 3 of 5 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 24/01/2025 at 15:55:39 Arbitrators as above. The requirements of Arbitration and Conciliation Act, 1996 (26 of 1996) and any further statutory modifications or re- enactment thereof and the rules made there under and for the time being in force shall be applicable It is a term of this contact that the party invoking arbitration shall give a list of disputes with amount 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 be appointed as arbitrator. ... ”

6. Clause 25 of the Contract dated 09.05.2018 indicates that the address given in the Conditions of Contract clearly indicates that the constitution of the Disputes Redressal Committee and a communication for claims more than Rs.25.00 lacs have to be address to the Chief Engineer, NDZ-III, CPWD, Sewa Bhawan, New Delhi. 7. Material on record indicates that on 29.04.2024, the Petitioner has already approached the concerned Officer for the purposes of constitution of the Disputes Redressal Committee. 8. It is the contention of the learned Counsel for the Respondents that on receipt of the letter, the Petitioner was asked to approach another Officer is not tenable. The purpose of a Dispute Redressal Committee is to ensure that the disputes have redressed and it is not a method of seeing a person invoking arbitration from one door to the other door. 9. In view of the fact that disputes have arisen between the Parties and the Contract dated 09.05.2018 contains arbitration clause, this Court is ARB.P. 30/2025 Page 4 of 5 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 24/01/2025 at 15:55:39 inclined to appoint an Arbitrator to adjudicate upon the disputes between the Parties. 10. Accordingly, Mr. Sharad Bobde, former Chief Justice of India (Mob. No.9871234803) is appointed as an Arbitrator to adjudicate upon the disputes between the Parties. 11. The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC. 12. The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on reference. 13. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law. 14. Needless to say, nothing in this order shall be construed as an expression of this Court on the merits of the contentions of the parties. 15. The present petition stands disposed of in the above terms along with pending application(s), if any. JANUARY 10, 2025 RJ SUBRAMONIUM PRASAD, J ARB.P. 30/2025 Page 5 of 5 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 24/01/2025 at 15:55:39