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2025 Supreme(Del) 766

IN THE HIGH COURT OF DELHI AT NEW DELHI
RAVINDER DUDEJA
Union Of India – Appellant
Versus
Sudhir Tyagi – Respondent


Advocates Appeared:
For the Petitioner: Mr. Jivesh Kumar Tiwari, SPC with Ms. Samiksha, Adv.
For the Respondent: Mr. Sanjoy Bhaumik, Adv.

JUDGMENT :

RAVINDER DUDEJA, J.

1. This petition under Article 227 of the Constitution of India impugns the order dated 25.10.2024, passed by the learned District Judge in Ex. 55/2017, titled “ Sudhir Tyagi Vs. Union of India .”

2. At the core, the issue is whether the expression “unless the award otherwise directs” in Section 31 (7)(b) of the Arbitration & Conciliation Act, 1996 [“the Act”], relates to rate of interest and not entitlement of interest.

3. Shorn of all the unnecessary details, the relevant facts are that petitioner No. 1 i.e., Northern Railway, awarded contractual work to the respondent, but due to certain disputes, respondent invoked the arbitration clause of the agreement. The High Court, vide order dated 16.11.2012, appointed a sole arbitrator.

4. Following three issues were raised and considered by the learned Arbitrator:-

i) Is the time essence of the contract between the parties or not?

ii) Whether the respondent imposed any penalty/liquidated damages upon the complainant till the completion of work?

iii) Whether the complainant is entitled to claim amounts as per the claim petition?

5. Issues No. 1 & 2 were decided in favour of the respondent and against the petitione

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