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2026 Supreme(Del) 524

IN THE HIGH COURT OF DELHI AT NEW DELHI
DINESH MEHTA, VINOD KUMAR, JJ.
M/s Ild Housing Projects Private Limited - Appellant
Versus
Acres Buildwell Private Limited - Respondent
FAO (COMM) 137 of 2026 CM APPL. 31934 of 2026 CM APPL. 31935 of 2026 CM APPL. 31936 of 2026
Decided On : 29-05-2026

Advocates Appeared:
For the Appellant : Mr. Mohit Arora and Mr. Paras Arora
Advocates
For the Respondent:Mr. Arav Kapoor, Mr. Nitin Saluja, Mr. Mayank Agarwal, Ms. Pranya Madan and Mr. Prateek Advocates

Courts possess independent authority under interim procedural rules and inherent powers to order the delivery of property pending litigation, specifically to prevent depletion or wastage, without requiring a final decree or formal execution process.

Headnote:(A) Code of Civil Procedure, 1908 - Order XII Rule 6 - Judgment on admission - Order XXXIX Rule 10 - Delivery of property - Section 151 - Inherent powers of court.

(B) Judgment on admission - Standards for judgment on admission require clear and unambiguous admissions; such standards cannot be imported into interim order provisions - Interim delivery of property - Provisions for interim delivery of property are independent of part-decrees and are intended to prevent asset depletion and wastage of resources - Inherent powers - Courts possess inherent power to grant interim relief to protect property and balance equities, particularly where assets are subject to depreciation, even if not strictly within the confines of specific procedural rules. (Paras 14, 16, 18, 23)

Facts of the case:
A dispute arose out of a commercial construction contract where project machinery and equipment were retained by one party at the site, citing the need for account reconciliation and recovery of excess advances. The party claiming ownership and seeking retrieval filed for immediate return of the assets due to escalating rental losses and asset depreciation.

Findings of Court:
The appellate court affirmed that the retention of the machinery was not backed by contractual authority. It emphasized that judicial intervention is necessary to prevent the loss of value and the decay of assets that are not being put to any productive use by the party in possession.

Issues: The main issues were whether a court can order the interim delivery of property based on partial admissions and whether such an order is contingent upon the prior preparation of a formal part-decree and subsequent execution proceedings.

Ratio Decidendi: The court ruled that the power to order delivery of property under interim procedural rules is independent of the power to pass a judgment on admission and does not require the completion of a formal decree. The court further held that inherent powers can be invoked to ensure the preservation of commercial assets and to avoid situations of mutual loss, especially where property rights are clear.

Result: Appeal dismissed.

Table of Content
1. factual context of the contractual dispute between plaintiff and defendant regarding construction site equipment. (Para 1 , 2 , 3 , 4 , 5 , 6 , 8)
2. defendant's contention regarding non-performance and retention of equipment for recovery of advances. (Para 7)
3. trial court's exercise of power for immediate delivery of site machinery. (Para 9 , 10)
4. arguments concerning the validity of part-decree and usage of procedural rules for equipment retrieval. (Para 11 , 12 , 13)
5. requirement of clear and unambiguous admissions for passing a part-decree under order xii rule 6 cpc. (Para 14 , 15)
6. scope and application of order xxxix rule 10 and inherent powers under section 151 cpc. (Para 16 , 17 , 18 , 19 , 20)
7. independence of order xxxix rule 10 from rule 6; judicial duty to prevent wastage of assets. (Para 21 , 22 , 23)
8. procedural guidance on separate applications and final disposal of the appeal. (Para 24 , 25 , 26 , 27)

JUDGMENT :

VINOD KUMAR , J.

1. The present first appeal under Section 13 of the Commercial Courts Act, 2015 read with Order XLIII Rule 1(r) of the Code Of Civil Procedure, 1908 (in short “CPC”) is directed against order dated 30.04.2026 passed by learned District Judge, Commercial Court-02, District South, Saket (in short “District Judge”) in CS (COMM) 460/2025.

2. For better comprehension and for the sake of convenience, the respondent would be referred as ‘Plaintiff’ and appellant would also be referred to as ‘Defendant’.

3. Before coming to the submissions of parties, it would be appropriate to briefly state the pleadings before the trial court.

PLAINT

4. As per the pleadings of the plaint, the respondent- plaintiff filed a suit against the appellant-defendant stating that plaintiff is a reputed construction company doing the business of executing civil, contractual and finishing work for prominent developers/builders and government projects. The defendant is engaged in the business of real estate development undertaking numerous residential and commercial projects. The defendant issued a Letter of Intent dated May 14, 2024 in favour of plaintiff awarding the work of completion of civil works of towers at Village Dhunella, Sector-33, Sohna District, Gurugram. It is averred in para 8 and 9 of the plaint that the plaintiff immediately upon issuance of Letter of Intent undertook substantial mobilization at defendant’s project site. In order to execute the assigned civil and structural work of the towers A, B, C and D, the plaintiff arranged, mobilized and deployed a wide range of machinery, scaffolding, shuttering, tower hoists, bar cutting machines, monkey lifts, material trolleys, cement mixers, diesel generators and allied equipment essential for high-rise construction from reputed suppliers such as Deesons Traders (scaffolding and shuttering materials), Rohit Engineering Works (Monkey Crane, trolley/lifting machinery), AS Engineering Company (Tower hoists/Material hoist), C-MAC (Passenger Hoist), ACE (Tower Crane Model No.5034), RRA enterprises (Bar cutting, Bar bending and ring making machine), and Ayaan Power Tools (grinder and Hilti hammer machines), amongst others.

5. It was averred in para 10 of the plaint that equipments and materials mobilized by plaintiff were partly owned by plaintiff and partly hired on a monthly rental basis from reputed suppliers. Further the plaintiff procured large quantities of cement shuttering wood, PPGI sheets, MS plates, steel channels and consumables from various vendors.

6. The case of the plaintiff that the terms governing engagement of plaintiff by defendant were crystallized in Letter of Intent dated 14.05.2024 issued by defendant in favour of plaintiff. It provided that the plaintiff would execute civil and contractual works in Towers A, B, C, D and the defendant’s project. The Letter of Intent expressly stipulated the mode and timeline of payment, process and certification of Running Account (RA) Bills by Engineer-in-charge/Project Manager Consultant. I

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