Delhi High Court - Orders
M/S Ram Kripal Singh Construction Pvt ... vs Rites Ltd And Anr on 5 May, 2025
Author: Sachin Datta
Bench: Sachin Datta
$~71
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 5750/2025
M/S RAM KRIPAL SINGH CONSTRUCTION PVT LTD
.....Petitioner
Through: Mr. Samrat Nigam, Sr. Adv., Mr.
Ajay Dabas, Ms. Priyanka Dagar and
Ms. Arpita Rawat, Advs.
versus
RITES LTD AND ANR .....Respondents
Through: Ms. Manisha Aggarwal and Ms.
Reema Mishra, Advs. For R-1
(through v/c)
Mr. Naman Jain, Adv. for R-2.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
ORDER
% 05.05.2025 CM APPL.26265/2025 (Exemption)
1. Allowed, subject to all just exceptions.
2. Application stands disposed of.
W.P.(C) 5750/2025
3. The present petition has been filed by the petitioner seeking that a decision dated 15.09.2024 taken by the Dispute Resolution Board (DRB) be implemented.
4. It is pointed out that the DRB was constituted in terms of Clause 7 of the General Conditions of Contract forming part of the Contract Agreement dated 28.06.2017 between the parties. Attention is drawn to Clause-7.2.3 of the applicable General Conditions of Contract which reads as under:
"7.2.3 The DRB shall give its decision in writing to both the parties within forty-two (42) days of the dispute being referred to it. If the DRB 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 29/06/2025 at 18:44:12 has done so, and if either the Employer or the Contractor is not satisfied with the decision of the DRB, then the affected party shall within a period of twenty-eight (28) days of the date of decision of the DRB, shall issue its intention to commence arbitration, failing which the decision of DRB shall become final and binding on the Employer and the Contractor. Any decision that has become final and binding shall be implemented by the parties forthwith."
5. Learned senior Counsel for the petitioner submits that the DRB, after extensive hearing, awarded Rs.7,13,65,376/- (Rupees Seven Crores Thirteen Lakhs Sixty-Five Thousand Three Hundred and Seventy-Six Only) to the petitioner under various heads, including price variation, overhead costs and machinery underutilization.
6. Vide letter dated 30.09.2024 sent by the petitioner to the respondent no.1, the petitioner sought for the release of the claims as allowed by the DRB vide decision dated 15.09.2024. However, the respondent no.1, without initiating arbitration or providing any justification, rejected the DRB's decision vide letter dated 11.10.2024 by merely stating the decision of the DRB was not acceptable. Relevant portion of the said letter dated 11.10.2024 reads as under -
7. Issue notice.
8. Learned counsel, as aforesaid, accepts notice on behalf of the respondents.
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 29/06/2025 at 18:44:12
9. Learned counsel for the respondent no.1 (with whom the petitioner has contractual privity) submits that the respondent no.1 has rejected the decision of the DRB. It is submitted by learned counsel that the respondent no.1 is not obliged to initiate arbitration ; if the petitioner is aggrieved with the decision of the DRB, the onus is on the petitioner to take recourse to arbitration proceedings.Learned counsel for the respondent no.1 submits that an affidavit to this effect shall be filed within a period of ten days from today.
10. List on 19.05.2025 in the category of 'supplementary matters'.
SACHIN DATTA, J MAY 5, 2025/cl 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 29/06/2025 at 18:44:12