Nkg Infrastructure Limited Vs Union of India through Director… — Arbitration | Delhi HC (2025)

Nkg Infrastructure Limited Vs Union of India through Director… — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Appointment of Ms. Justice Rekha Palli, former Judge of the Court, as Sole Arbitrator to adjudicate the disputes between the parties, with her fee to be fixed as per the Fourth Schedule of the 1996 Act as agreed and disclosure under Section 12 of the 1996 Act before entering upon reference.

Issue for consideration

Whether a Sole Arbitrator should be appointed pursuant to Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate the disputes between the Petitioner and the Respondents arising out of the DGMAP construction contract, following the Respondents' non-response to the arbitration invocation notice.

Ratio / Principle

With the consent of the parties, Ms. Justice Rekha Palli, former Judge of this Court, is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

Key takeaways

The fee of the Arbitrator shall be fixed as per the Fourth Schedule of the 1996 Act, as agreed.ratio¶19
The Learned Arbitrator shall give the requisite disclosure under Section 12 of the 1996 Act before entering upon the reference.ratio¶20
The Court expressly reserved the question of merits, stating it had expressed no opinion on the merits and all rights and contentions of the respective parties are left open.obiter

Detailed headnote1 paragraphs

High Court of Delhi, ARB.P. 1409/2025 (decided 12.09.2025, Jyoti Singh, J): On a petition filed by NKG Infrastructure Limited under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator — arising from a DGMAP contract for construction of Married Accommodation at Jalandhar and Suranussi (Work Order dated 03.01.2011, stipulated completion period 25 months, delays mutually attributed, Completion Certificates issued, Final Bill submitted 16.10.2023, and an arbitration invocation notice dated 26.12.2023 that went unanswered by the Union of India through DGMAP and Anr.) — the Court, recording that the Respondents had no objection to appointment of an Arbitrator while disputing the claims on merits and acting on the counsels' joint proposal, appointed Ms. Justice Rekha Palli, former Judge of this Court, as Sole Arbitrator with the consent of the parties. Her fee is to be fixed as per the Fourth Schedule of the 1996 Act, as agreed, and she is to give the disclosure under Section 12 of the 1996 Act before entering upon the reference. The Court expressly made clear that it had not expressed any opinion on the merits and all rights and contentions of the parties stand left open. The petition was disposed of accordingly.

$~70

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 1409/2025

NKG INFRASTRUCTURE LIMITED .....Petitioner

Through: Mr. Pradeep Chhindra, Ms. Devarshi Mishra and Mr. Parth Dhawan, Advocates.

versus

UNION OF INDIA THROUGH DIRECTOR GENERAL MARRIED ACCOMMODATION PROJECT AND ANR .....Respondents Through: Mr. Nishant Gautam, CGSC with Mr. Prithviraj Dey and Mr. Vinay Kaushik, Advocates.

CORAM:

HON'BLE MS. JUSTICE JYOTI SINGH

O R D E R

% 12.09.2025

This petition is filed on behalf of the Petitioner under Section 11(6) of Arbitration and Conciliation Act, 1996 (‘1996 Act’) seeking appointment of a Sole Arbitrator.

As per the case of the Petitioner, Respondents issued a Tender for construction of Married Accommodation at Jalandhar and Suranussi under the Directorate General Married Accommodation Project (DGMAP). Stipulated time for completion of the work was 25 months. Being a successful bidder, Work Order was issued in favour of the Petitioner on 03.01.2011. There was delay in execution of the contract, for which parties blamed each other. After Completion Certificates were issued by the Respondents, Petitioner submitted its Final Bill on 16.10.2023 and thereafter disputes arose between the parties. Petitioner sent notice invoking arbitration

ARB.P. 1409/2025

Page 1 of 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 22/09/2025 at 12:31:10

dated 26.12.2023, however, there was no response from the Respondents.

Learned CGSC appearing for the Respondents had sought time on 09.09.2025 to revert with instructions on the appointment of the Arbitrator. It is submitted that while disputing the claims of the Petitioner on merits, Respondents have no objection to the Arbitrator being appointed for adjudication of the disputes. Learned counsels jointly propose the name of Ms. Justice Rekha Palli, former Judge of this Court for appointment as the Sole Arbitrator.

Accordingly, with the consent of the parties, Ms. Justice Rekha Palli, former Judge of this Court, (Mobile No. 9810012120), is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. Fee of the Arbitrator shall be fixed as per Fourth Schedule of 1996 Act, as agreed.

Learned Arbitrator shall give disclosure under Section 12 of the 1996 Act before entering upon reference.

It is made clear that this Court has not expressed any opinion on the merits of the case and all rights and contentions of the respective parties are left open.

Petition is disposed of in the aforesaid terms.

JYOTI SINGH, J

SEPTEMBER 12, 2025 Ch

ARB.P. 1409/2025

Page 2 of 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 22/09/2025 at 12:31:10