The interpretation of 'as is where is' clause does not absolve the vendor of responsibility for delivering an operational property; oral assurances prior to contract affect enforceability.

JUDGMENT :

VINOD KUMAR, J.

1. This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’) is directed against a judgment dated 31.10.2025 passed by the learned District Judge-02, Central District, Tis Hazari, Delhi (in short ‘District Judge’) in ARBTN A.(Comm.)No.33/2019, vide which he dismissed the objections under Section 34 of the Act filed by the appellant-DDA under of the Act challenging the Award dated 20.05.2014 adjudicated by the sole Arbitrator. For the sake of convenience, the appellant would also be referred to as ‘DDA’ and respondent would also be referred to as ‘Claimant’.

DISPUTE

2. The respondent is engaged in the business of running parking sites at various places in NCT of Delhi. In a parking tender process for Truck Parking site at Majnu ka Tila, Timarpur, Delhi (hereinafter referred to as „the parking site‟), the appellant-DDA declared the respondent as the highest bidder and consequently issued an allotment letter bearing No. F.99/11/2010/LPC/Parking/699 dated 26.03.2010 at a monthly license fee of Rs.5,11,000/- for a contract period of three years and directed the respondent to comply with the terms and conditions in the aforesaid allotment letter. The respondent had already deposited two months’ license fee as ‘earnest money’ at the time of submitting tender. He communicated his acceptance vide letter dated 29.03.2010 and also deposited advance license fee of three months i.e. Rs.15,33,000/- adjustable only against the last three months of the contract period as per the terms of the allotment letter. The abovementioned acceptance letter is reproduced as below:

“To,
Dated 29.03.2010
The Assistant Director,
Delhi Development Authority,
Vikas Sadan, INA,
Delhi.

Subject:-Truck Parking Site Majnu Ka Tila.

Reference:- Your letter no: F 99(11)
2010/LPC/Parking/699
Dated 26.03.2010.

Sir, With thanks, I am in receipt of your said letter no: F 99(11)2010/LPC/Parking/699 dated 26.03.2010 whereby you have called upon to fulfill the following requirements. Please find enclosed the following documents as required by you in your above acceptance letter as under:-

1. Three months license fee of Rs. 15,33,000/- vide challan no 6149 dt: 27.03.2010 deposited in SBI, Vikas Sadan, New Delhi.

2. Acceptance of Terms and Conditions on Non-Judicial stamp paper of Rs.10/- duly attested by Notary Public bearing no: 33 AA 567730.

3. License deed on a non judicial stamp paper of Rs.100/- duly attested by Notary Public for three years bearing no: К 808327.

4. Four specimen signature duly attested by Gazzetted officer.

5. Four passport size photograph attested by Gazzelted officer.

6. P/C of election I-Card duly attested by Gazzetted Officer.

Sir, after visiting at parking site, I observed that there is no in and out gate provided at the parking site for smooth and proper exist and entrance of tine vehicles besides the parking site is not been categorically demarcated and fenced. No boundary wall constructed covering the parking area and because of above reasons the safety of vehicles parked in the parking area are at high risk and is an open invitation for the anti-social elements who could easily steal the vehicle, belongings etc. from the parking zone.

It is further observed that the substantial area of the parking are encroached by local shop keepers, Rehri walas, hawkers who are operating illegally from the parking sites besides that there is permanent sort of