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M/S Thermal Engineers and Insulators Pvt. Ltd. v. Govt of NCT of Delhi

Delhi HC16 Feb 2026ARB.P./175/2026

Case brief

AI extract

What is this about?

The Court, satisfied of a valid arbitration clause, appointed a sole arbitrator for disputes regarding an agreement between the petitioner and the Respondent Government of NCT of Delhi, directing the DIAC to appoint an engineer meeting the contract's qualification criteria.

What did the court decide?

The matter referred to DIAC to appoint a Sole Arbitrator in terms of the qualifications specified in Clause 25.2(b) of the Contract Agreement.

M/S Thermal Engineers and Insulators Pvt. Ltd. Vs Govt of… — Specific Performance | Delhi HC (2026)

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$~2

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 175/2026

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M/S THERMAL ENGINEERS AND INSULATORS PVT. LTD.

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.....Petitioner

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Through: Mr. Sanjam Chaba, Ms. Nisha Singh, Ms. Samiksha Yadav, Advs. Mob: 9711236952

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versus

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GOVT OF NCT OF DELHI .....Respondent

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Through: Mr. Anubhav Gupta, Panel Counsel (Civil) GNCTD Mob: 9910623535 Email: [email protected]

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CORAM: HON'BLE MS. JUSTICE MINI PUSHKARNA

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O R D E R % 16.02.2026

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The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), for appointment of a Sole Arbitrator for adjudication of disputes between the parties, arising out of the th Contract Agreement dated 20 February, 2024, whereby, the petitioner herein was awarded the work of “ Improvement of streets and side drain at Mansa Ram Park in Matiala Assembly Constituency AC-34 (Regd. No. 993) ”.

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It is the case of the petitioner that despite due execution, completion, intimation, as well as deemed acceptance of completion of the awarded

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Page 1 of 5

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This is a digitally signed order.

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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 18/02/2026 at 11:49:02

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work under the Agreement, the respondent has failed to release the legitimate dues, owing to which the petitioner has suffered huge financial losses. Further, the respondent has illegally determined the Agreement on 06^th October, 2025, without any valid reason.

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th 3. Pursuant thereto, the petitioner sent a Demand Notice dated 09 September, 2025 to the Executive Engineer, Civil Division-I, Irrigation & Flood Control Department, Government of NCT of Delhi (“GNCTD”), seeking release of pending dues and the Performance Guarantee submitted by it. However, the disputes raised by the petitioner were not settled by the Executive Engineer.

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Learned counsel appearing for the petitioner submits that since the disputes/claims were not settled by the said Executive Engineer, therefore, the arbitrator appointing authority under the amended/modified Clause 25 of the Agreement between the parties was approached by the petitioner, for appointment of an Arbitrator, vide a letter dated 14th October, 2025 as well as vide an E-mail dated 25^th October, 2025.

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It is submitted that the said arbitrator appointing authority, i.e., Chief Engineer, despite receipt of petitioner’s notice invoking Clause 25 of the Agreement, has failed to issue any reply or take any step for appointment of a Sole Arbitrator. Thus, the present petition has been filed.

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Today, learned counsel appearing for the respondent, on instructions, submits that they have no objection if an Arbitrator is appointed by this Court for adjudication of the disputes between the parties.

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Learned Counsel appearing for the petitioner submits that they have a claim of approximately Rs. 1,59,42,730/- (Rupees One Crore Fifty Nine Lacs Forty Two Thousand Seven Hundred Thirty).

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Page 2 of 5

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This is a digitally signed order.

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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 18/02/2026 at 11:49:02

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This Court notes that the amended Clause 25 , which forms part of the Contract Agreement dated 20^th February, 2024 between the parties, stipulates recourse to conciliation proceedings under Clause 25.1 . However, arbitration can be invoked directly as well under the modified Clause 25.2 , which contains the Arbitration Clause. The said modified Clause 25.2 reads as follows:

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“xxx xxx xxx

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Page 3 of 5

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This is a digitally signed order.

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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 18/02/2026 at 11:49:02

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xxx xxx xxx”

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Perusal of Clause 25.2(b) shows that the qualification of the Arbitrator to be appointed has been specified, as per which, the Arbitrator has to be a Graduate Engineer with experience of execution of public works engineering contracts, having worked at a level not lower than Chief Engineer. The said educational qualification and work experience has been stipulated as a mandatory condition for appointment of an Arbitrator.

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In this regard, learned counsel appearing for the respondent submits that since the qualification of the Arbitrator is specified in the Contract Agreement between the parties, an engineer be appointed as an Arbitrator, in terms of the specified qualifications.

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In view of the aforesaid, this Court is satisfied that there exists a valid Arbitration Clause, being Clause 25.2 of the Contract Agreement dated 20^th February, 2024, for adjudication of the disputes between the parties.

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Accordingly, with the consent of the parties, and in terms of Clause

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Page 4 of 5

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This is a digitally signed order.

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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 18/02/2026 at 11:49:02

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25.2 of the Contract Agreement dated 20^th February, 2024, the following directions are issued:

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(i) The matter is referred to the Delhi International Arbitration Centre (“DIAC”), to be held under the aegis and Rules of the DIAC.

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(ii) The DIAC, Delhi High Court, Sher Shah Road, New Delhi shall appoint a Sole Arbitrator in terms of the qualification as specified in Clause 25.2(b) of the Contract Agreement dated 20^th February, 2024 between the parties.

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(iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

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(iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Arbitration Act prior to entering into the reference.

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(v) It shall be open to the respondent to raise counter-claims, if any, in the arbitration proceedings.

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(vi) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned Arbitrator.

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Accordingly, the present petition is disposed of in the aforesaid terms.

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The Registry is directed to send a copy of this order to the Secretary, DIAC, for their information and compliance.

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MINI PUSHKARNA, J

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FEBRUARY 16, 2026/ SK

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Page 5 of 5

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This is a digitally signed order.

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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 18/02/2026 at 11:49:02

M/S Thermal Engineers and Insulators Pvt. Ltd. v. Govt of NCT of Delhi

Case brief

What is this about?

What did the court decide?

M/S Thermal Engineers and Insulators Pvt. Ltd. v. Govt of NCT of Delhi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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