Disposed¶19

Sh. Vinod Kumar Garg v. Union of India & Ors.

Delhi HC4 Sept 2025W.P.(C)/13616/2025

Case brief

AI extract

What is this about?

Vinod Kumar Garg v. Union of India & Ors., W.P.(C) 13616/2025 & W.P.(C) 13631/2025 (Delhi HC, 04.09.2025, Sachin Datta J): writ challenge by sole proprietor to SAIL's non-acceptance of contracted goods and Risk Purchase Notice not entertained; arbitration clause in contract; liberty granted to claim damages via contractual dispute resolution; exemption applications allowed. Keywords: SAIL, Risk Purchase Notice, arbitration clause, alternative remedy, writ jurisdiction, damages, stay applications.

What did the court decide?

Liberty to the parties to invoke the contractual dispute resolution mechanism (arbitration), inter alia for claiming damages and other reliefs as may be admissible under law; the writ grievances themselves were not adjudicated. ¶19

Sh. Vinod Kumar Garg Vs Union of India & Ors. — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

¶19

Issue for consideration

Whether SAIL acted arbitrarily and unreasonably in not accepting the goods contracted to be supplied by the petitioner, resulting in failure of supplies and issuance of a Risk Purchase Notice. +1 more

¶14

Ratio / Principle

Given the contractually prescribed dispute resolution clause (which provides for arbitration) and considering that intricate factual and contractual issues arise in the case, the Court found it not apposite to entertain the writ petitions.

¶18

Key takeaways

Liberty was granted to the parties to invoke the dispute resolution mechanism prescribed in the contract, inter alia for claiming damages and other reliefs as may be admissible under law.ratio¶18
The exemption applications (CM APPL.55827/2025 in W.P.(C) 13616/2025 and CM APPL.55855/2025 in W.P.(C) 13631/2025) were allowed subject to all just exceptions and the applications stood disposed of.ratio¶9

Detailed headnote1 paragraphs

Delhi High Court (Sachin Datta, J., 04.09.2025), W.P.(C) 13616/2025 & W.P.(C) 13631/2025 — Vinod Kumar Garg v. Union of India & Ors.: The petitioner, a sole proprietor holding a contract with Steel Authority of India (SAIL) for supply of goods, assailed SAIL's refusal to accept the goods and the resultant Risk Purchase Notice as arbitrary and unreasonable. It transpired that the supply contract had already been placed on a third party and that the contract contained an arbitration clause. Holding that, given the contractually prescribed dispute resolution clause and the intricate factual and contractual issues involved, it was not apposite for the writ court to entertain the petitions, the Court disposed of the petitions, granting the parties liberty to invoke the contractual dispute resolution mechanism, inter alia for claiming damages and other reliefs admissible under law. Exemption applications were allowed subject to all just exceptions.

¶1

$~103 and 107

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

¶3

W.P.(C) 13616/2025 and CM APPL.55826/2025 (Stay) (103) SH. VINOD KUMAR GARG .....Petitioner Through: Mr. Rohit Goel, Mr. Vineet and Mr. Mithlesh Jha, Advs.

¶4

versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Shashank Bajpai, CGSC and Mr. Vatsal Tripathi, Adv. for R-1. Mr. Siddharth Yadav, Sr. Adv., Mr. Siddharth Iyer and Mr. Chhatresh Kumar Sahu, Advs. for R-2 to 4.

¶5

W.P.(C) 13631/2025 and CM APPL.55854/2025 (Stay) (107) SH. VINOD KUMAR GARG .....Petitioner Through: Mr. Rohit Goel, Mr. Vineet and Mr. Mithlesh Jha, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Shashank Bajpai, CGSC and Mr. Vatsal Tripathi, Adv. for R-1. Mr. Siddharth Yadav, Sr. Adv., Mr. Siddharth Iyer and Mr. Chhatresh Kumar Sahu, Advs. for R-2 to 4

¶6

CORAM:

¶7

HON'BLE MR. JUSTICE SACHIN DATTA O R D E R % 04.09.2025

¶8

CM APPL.55827/2025 (Exemption) inW.P.(C) 13616/2025 CM APPL.55855/2025 (Exemption) in W.P.(C) 13631/2025

¶9

Allowed, subject to all just exceptions.

¶10

Applications stand disposed of.

¶11

W.P.(C) 13616/2025 and CM APPL.55826/2025 (Stay) W.P.(C) 13631/2025 and CM APPL.55854/2025 (Stay)

¶12

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 09/09/2025 at 12:23:52

¶13

The petitioner is a sole proprietor who entered into contract with Steel Authority of India (SAIL) for supply of certain goods.

¶14

The grievance of the petitioner is that SAIL acted arbitrarily and unreasonably in not accepting the said goods, as a result of which the supplies could not be effected.

¶15

Ultimately a Risk Purchase Notice was issued by the SAIL.

¶16

Various factual grounds are urged by the petitioner to assail the legitimacy and validity of the action/s taken by SAIL.

¶17

Learned senior counsel for the SAIL, who appears on advance notice submits that for the purpose of supply of the concerned goods, the contract has already been placed on third party. It also transpires that the contract between the petitioner and SAIL contains an arbitration clause.

¶18

In the circumstances, given the contractually prescribed dispute resolution clause (which provides for arbitration) and considering that intricate factual and contractual issues arise for consideration in the present case, this Court does not find it apposite to entertain the present petitions. However, liberty is granted to the parties to invoke the dispute resolution mechanism, as prescribed in the contract, inter - alia for claiming damages and other reliefs as may be admissible under law.

¶19

The petitions are disposed of in the above terms.

¶20

SACHIN DATTA, J

¶21

SEPTEMBER 4, 2025/ cl

¶22

This is a digitally signed order.

¶23

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 09/09/2025 at 12:23:52

Sh. Vinod Kumar Garg v. Union of India & Ors.

Case brief

What is this about?

What did the court decide?

Sh. Vinod Kumar Garg v. Union of India & Ors.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Procedural history

Parties & counsel

Coram

Case details

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