Ashwani Garg Vs Delhi Tourism and Transportation Development… — Arbitration | Delhi HC (2025)

Ashwani Garg Vs Delhi Tourism and Transportation Development… — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Appointment of Ms. Justice Sangita Dhingra Sehgal, former Judge of this Court, as Sole Arbitrator to adjudicate the disputes between the parties; arbitration proceedings to be held under the aegis of DIAC and as per its Rules; Arbitrator's fee as per the DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018; disclosure under Section 12 of the 1996 Act before entering upon reference.

Issue for consideration

Whether a Sole Arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate disputes between the parties arising from alleged outstanding payments under the contract containing arbitration Clause 25.

Court's answer

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

Ratio / Principle

The arbitration proceedings will be held under the aegis of DIAC and as per its Rules.

Key takeaways

The fee of the Arbitrator shall be as per the DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018.ratio¶20
The learned Arbitrator shall give disclosure under Section 12 of the 1996 Act before entering upon the reference.ratio¶21
The Court has not expressed any opinion on the merits of the case; all rights and contentions of the respective parties are left open.obiter

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 — Section 11(6) — appointment of Sole Arbitrator. Disputes arose out of a contract of Rs.4,52,71,305/- awarded to the Petitioner by the Respondent in 2016 for upgradation and construction of additional classrooms and labs at GGSS, Shakti Nagar, Delhi; completion certificate was issued on 28.12.2018 but the final bill remained unpaid. Petitioner invoked arbitration Clause 25 by notice dated 29.11.2023; no response followed. Before the Court, the Respondent did not dispute the existence of Clause 25 as the arbitration agreement and had no objection to appointment of a Sole Arbitrator. With consent of parties, the Court appointed Ms. Justice Sangita Dhingra Sehgal, former Judge of the Delhi High Court, as Sole Arbitrator; proceedings to be held under the aegis of DIAC and per its Rules, with fees per the DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018, and disclosure under Section 12 before entering on the reference. No opinion expressed on merits; all contentions left open. Petition disposed of.

$~51

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 547/2025

ASHWANI GARG .....Petitioner

Through: Mr. Avinash Trivedi and Mr. Rahul Aggarwal, Advocates.

versus

DELHI TOURISM AND TRANSPORTATION DEVELOPMENT CORPORATION LTD .....Respondent Through: Mr. Uday Seth and Ms. Puja Dewan Seth, Advocates.

CORAM:

HON'BLE MS. JUSTICE JYOTI SINGH

O R D E R % 17.04.2025

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

Petitioner applied against a tender published for execution of the work of ‘Upgradation and construction of Additional Classroom & Labs., at GGSS, Shakti Nagar, Delhi’ by the Respondent and was declared a successful bidder. Acceptance letter for awarding the work was issued in favour of the Petitioner on 27.01.2016. Petitioner submitted Performance Bank Guarantees and parties executed an Agreement for execution of the work for a total sum of Rs.4,52,71,305/-. Stipulated date of completion was 02.10.2016. As per the Petitioner, the work was completed with the delay of 817 days but the Respondent issued completion certificate on 28.12.2018 but did not pay the final bill as per the terms of the Contract. Disputes

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 30/04/2025 at 15:44:44

Page 1 of 2

ARB.P. 547/2025

having arisen with respect to the alleged outstanding payments and there being an arbitration clause between the parties, Petitioner invoked Clause 25 vide notice dated 29.11.2023 followed by reminders and sought appointment of an Arbitrator but there was no response and Petitioner has filed the present petition.

Issue notice.

Mr. Uday Seth, learned counsel accepts notice on behalf of the Respondent and on instructions, submits that Respondent does not dispute the existence of Clause 25 as an arbitration agreement between the parties and has no objection to the appointment of a Sole Arbitrator by this Court.

Accordingly, with the consent of the parties, Ms. Justice Sangita Dhingra Sehgal, former Judge of this Court (Mobile No. 9717592061) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. Arbitration proceedings will be held under the aegis of DIAC and as per its Rules. Fee of the Arbitrator shall be as per the DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

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

APRIL 17, 2025 S.Sharma /shivam

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 30/04/2025 at 15:44:44

Page 2 of 2

ARB.P. 547/2025