Delhi High Court - Orders
M/S Ahluwalia Contracts India Ltd vs Delhi Development Authority on 18 December, 2025
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~22
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 2001/2025
M/S AHLUWALIA CONTRACTS INDIA LTD .....Petitioner
Through: Mr. Kunwar Chandresh, Ms. Poonam
Prasad, Mr. Bitan Chakraborty, Mr.
Divyansh Singh, Advs.
versus
DELHI DEVELOPMENT AUTHORITY .....Respondent
Through: Mr. Sanjay Vashishtha, Mr
Siddhartha Goswami, Advs.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 18.12.2025
1. This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of disputes between the parties.
2. The facts are that the respondent floated the tender for the work of "Construction of 2128 EWS & 348 Category-II Houses On Design And Built In Pkt-1 C at Sector A-1 to A-4, Narela i/c Internal Development And Electrification." Subsequently, petitioner entered into an Agreement No. 11/EE/ND-4/DDA/2014-15 and a Letter of Acceptance dated 07.05.2014 was issued in favor of the petitioner for the said work.
3. The General Clauses of the Contract to the said Agreement contains an arbitration clause being Clause No. 25, which reads as under:-
"Clause: 25 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 22/12/2025 at 21:03:41 Settlement of Disputes & Arbitration (A) 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 on any matter in connection with or arising out of the contract or carrying out of the work to be unacceptable, he shall promptly within 15 days request the Superintending Engineer in writing for written instruction or decision. Thereupon the Superintending Engineer shall give his written instructions or decision within a period of one month from the receipt of the contractor's letter.
If the Superintending Engineer fails to give his instructions or decision in writing within the aforesaid period or if the contractor is dissatisfied with the instructions or decision of the Superintending Engineer, the contractor may, within 15 days of 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 22/12/2025 at 21:03:41 the receipt of Superintending Engineer's decision, appeal to the Chief Engineer who shall afford an opportunity to the contractor to be heard, if the latter so desires and to offer evidence in support of his appeal. The Chief Engineer shall give his decision within 30 days of receipt of the Contractor's Appeal. If the contractor is dissatisfied with his decision, the contractor shall within 30 days from the receipt of the decision, give notice to the Engineer Member for appointment of Arbitrator, failing which, the said decision shall be final, binding and conclusive and not referable to adjudication by the Arbitrator.
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, who shall be a technical person having knowledge and experience of the trade, appointed by the Engineer-Member, DDA. It will be no objection to any such appointment that the arbitrator so appointed is a DDA employee that he had to deal with the matter to which the contract relates and that in course of his duties as DDA employee, he has expressed his views in all or any of the matters in dispute of difference. 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. Except where the decision has become final, binding and conclusive in terms of Sub 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 22/12/2025 at 21:03:41 Para (i) above disputes or difference shall be referred for adjudication through arbitration appointed as under: Matters to be arbitrated upon shall be referred to a sole Arbitrator, where the total value of claims does not exceed Rs. 10.00 million. Beyond the claim limit of Rs.10.00 million, there shall be three arbitrators. For this purpose, the DDA will make out a panel of Engineers with the requisite qualifications and professional experience relevant to the field to which the contract relates. This panel will be from serving or retired Engineers of Central/State Government, DDA's or of Public Sector, In case of a single arbitrator, the Panel will be of three Engineers, out of which the Contractor will choose one. In case three arbitrators are to be appointed, the DDA will make out a panel of five. The Contractor and the DDA will choose one arbitrator each and the two so chosen will choose the third arbitrator. Neither party shall be limited in the proceedings before such arbitrator(s) to the evidence nor did arguments put before the Chief Engineer for the purpose of obtaining his decision. The arbitration proceedings shall be held in Delhi only. The language of proceedings that of documents and communication shall be English.
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 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 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 22/12/2025 at 21:03:41 appointed by the Engineer Member, DDA, 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 the payment, the claim of the contractor shall be deemed to have been waived and absolutely barred and the DDA 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 there under and for the time being in force shall apply to the arbitration proceedings 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 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 of the date he issues the notice to both the parties calling them to submit their statement of claims 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 22/12/2025 at 21:03:41 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.
(B)The Decision of the Superintending Engineer regarding the quantum of reduction as well as justification thereof in respect of rates for sub-standard work which may be decided to be accepted will be final and could not be open to Arbitration."
4. Since there were disputes between the parties, the petitioner after exhausting pre-arbitral mechanism, invoked arbitration vide Legal Notice dated 25.07.2025.
5. Mr. Vashishth, learned standing counsel for the respondent states that the arbitration clause is admitted but there are dues which the respondent has against the petitioner. He states that it is the respondent who has amounts outstanding and payable by the petitioner.
6. However, the said disputes goes to the merits of the matter and lies in the exclusive domain of the Arbitral Tribunal. This Court at referral stage is not to go into the merits of the case and is only required to take a limited view with respect to the existence of the arbitration clause.
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 22/12/2025 at 21:03:41
7. The amount in question is stated to be about Rs. 1.42 crores, which is a little over Rs. 1 crore. As per the arbitration clause, dispute more than Rs. 1 crore is to be referred to a Arbitral Tribunal of three members.
8. However, in order to save costs and money, it is suggested that the learned counsel for the respondent may obtain instructions for appointment of a Sole Arbitrator.
9. Mr. Vashishta, learned standing counsel for the respondent seeks and is granted time till next date of hearing to obtain instructions.
10. List on 23.12.2025.
JASMEET SINGH, J DECEMBER 18, 2025/sp/dm 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 22/12/2025 at 21:03:41