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2026 Supreme(Del) 24

IN THE HIGH COURT OF DELHI AT NEW DELHI
HARISH VAIDYANATHAN SHANKAR, J.
Mahajan Imaging Pvt Ltd. – Appellant
Versus
Pushpawati Singhania Research Institute & Anr. – Respondent
O.M.P.(I) (COMM.) 29 of 2026 & I.A. 1983 of 2026
Decided On : 26-02-2026

Advocates Appeared:
For the Appellant :Mr. Sandeep Sethi, Senior Advocates along with Mr. Varun Shankar, Ms. Ishita Dahiya, Mr. Harsh Rastogi, Mr. Ujjwal Barwal, Mr. Krishna Gambhir, Mr. Naman Maheshwari, Ms. Shreya Sethi and Ms. Riya Kumar, Advocates.
For the Respondent:Mr. Rajeev K. Virmani, Senior Advocate with Ms. Ritu Bhalla, Mr. Siddhartha Das, Mr. Himanshu Goel, Mr. Siddharth Gautam, Ms. Shriya Gambhir and Ms. Diva Saigal, Advocates.

A contract with specific termination conditions is not inherently determinable under Section 14 of the Specific Relief Act, allowing for interim relief to maintain status quo pending arbitration.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 9 - Specific Relief Act, 1963 - Section 14 - Petition for ad-interim relief against the termination of the Radiology Services Agreement - The grant of interim relief is conditioned upon existing contractual frameworks and compliance with specified procedures for termination - Court emphasizes that the contract is not inherently determinable, as termination requires notice and opportunity to cure breaches. (Paras 10, 12, 36)

(B) Injunction - Criteria for grant - Court finds prima facie case, balancing convenience, and potential for irreparable harm justify maintaining status quo pending arbitration - Termination stayed. (Paras 47, 52)

Facts of the case:
Petitioner challenged the termination of a long-term Radiology Services Agreement by the Respondents, citing failure to adhere to the notice and cure period requirements for breach as outlined in the contract.

Findings of Court:
Interim relief granted to maintain status quo and prevent termination pending arbitration, acknowledging potential irreparable harm to the Petitioner’s commercial interests and goodwill.

Issues: Whether the Agreement can be considered determinable under Section 14 of the SRA, and if the Respondents complied with contractual termination procedures.

Ratio Decidendi: The Court ruled that agreements with structured termination procedures cannot be deemed inherently determinable, thus allowing for the possibility of specific performance and granting interim protection.

Result: Petition allowed; termination notice stayed.

Table of Content
1. introduction of petition and factual background. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. arguments regarding the nature of the contract. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. counterarguments by the petitioner against the respondents' claims. (Para 19 , 20 , 21 , 22 , 23)
4. court's observations regarding legal principles and context. (Para 24 , 26 , 27 , 28 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37)
5. analysis of the merits of the case and implications of the termination. (Para 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51)
6. decision and order by the court. (Para 52 , 53 , 54 , 55)
7. final conclusions and costs. (Para 56 , 57)

JUDGMENT :

HARISH VAIDYANATHAN SHANKAR, J.

1. The present petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 A&C Act, seeking the following reliefs:

“…..

A. Grant an ad-interim injunction on the operation and effect of the Termination Notice dated 02.01.2026 issued by the Respondents, and restrain the Respondents from giving effect to the same or terminating the Radiology Services Agreement dated 02.05.2016 (as amended) in any manner pending final adjudication of the disputes through arbitration;

B. Direct the parties to maintain status quo with respect to the operation, management, and functioning of the Radiology Department at the Respondent No. 1 Hospital under the Agreement, including uninterrupted access and services by the Petitioner;

C. Grant a prohibitory ad-interim injunction restraining the Respondents, their agents, assigns, or any persons claiming through them, from creating any third-party rights or interests in the Radiology Department, premises, equipment, or services covered under the Agreement;

D. Grant a prohibitory ad-interim injunction restraining the Respondents from installing any radiology equipment, or rendering such services within the premises covered under the Agreement;

E. Direct the Respondents to make the payments to the Petitioner as per the timeline agreed in the Agreement in a transparent and timely manner.

F. Restrain the Respondents from transferring, removing, alienating, or otherwise dealing with any machinery, equipment, or assets installed and operated by the Petitioner in the Radiology Department at the Respondent No. 1 Hospital.

G. Grant any other order(s) that this Hon’ble Court deems fit and proper.”

BRIEF FACTS:

2. The Petitioner is a company duly incorporated in India under the Companies Act, 1956, having its registered office at K-18 Hauz Khas Enclave, New Delhi, India. Respondent No. 1 is a company engaged in the healthcare sector, having its registered office at 3, Bahadur Shah Zafar Marg, Link House, New Delhi. Respondent No. 2 1 A&C Act is the Chief Executive Officer of Respondent No.1.

3. On 02.05.2016, the Petitioner and Respondent No.1 executed a Radiology Services Agreement, Agreement for a period of fifteen (15) years, whereunder the Petitioner was entrusted with the responsibility of establishing, managing and operating the Radiology Department at the hospital premises of Respondent No.1 and was required, inter alia, to render radiology services in a competent and uninterrupted manner in compliance with applicable laws, to ensure that the equipment installed met the prescribed standards, and to obtain and maintain the requisite statutory permits and licences.

4. The Agreement was to remain in force until 02.05.2031, subject to termination in accordance with Clause 10 thereof. Clause 10 provides for termination in specified contingencies, including termination on account of a material breach, subject to issuance of written notice and the grant of a cure period of forty-five (45) days. Clause 13 of the Agreement contains the dispute resolution mechanism, requiring the parties to first attempt resolution through mutual discussions and, failing such resolution, to refer the disputes to arbitration.

5. It is stated that after such an arrangement had been continuing for several

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