NEUTRAL CITATION NO. 2023/DHC/001374

Page 1 of 27

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

%

Reserved on :

16^th January, 2023

Pronounced on:

24^th February, 2023

+

ARB.P.1146/2022

M/S KULDEEP KUMAR CONTRACTOR

….. Petitioner

Through: Mr. Aditya Dhawan and Ms. Kiran

Dhawan, Advocates

versus

HINDUSTAN PREFAB LIMITED

..…Respondent

Through: Mr.Varun Nischal, Mr.Vaibhav

Mishra,

Advocates

with

Mr.

Mukesh Kumar (Legal In-charge).

CORAM:

HON’BLE MR. JUSTICE CHANDRA DHARI SINGH

J U D G M E N T

CHANDRA DHARI SINGH, J.

1.

The instant petition has been filed on behalf of the petitioner under

Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter

referred to as “the Act, 1996”) seeking the appointment of a sole

Arbitrator and inter alia praying as under:

Digitally Signed

By:GAURAV SHARMA

Signing Date:24.02.2023

18:21:12

Signature Not Verified

NEUTRAL CITATION NO. 2023/DHC/001374

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Factual Matrix

2.

The petitioner is a partnership firm having its registered office at

shop No. 452, 1^st Floor, New Grain Market, Karnal, Haryana-132001.

The petitioner is a listed Class-1/(A) „Contractor‟, primarily dealing with

civil construction works, with Government departments. The respondent

is a company incorporated under the Companies Act, 1956, having its

registered office at Jangpura, New Delhi-110014, functioning under the

administrative control of the Ministry of Housing & Urban Affairs,

Government of India.

3.

On 22^ndOctober, 2018, the respondent, issued a „Letter of Award‟

to the petitioner vis-a-viswork related to “Construction of pre-fabricated

shelter for homeless persons at different places in Haryana” for the

revised/accepted rate of Rs. 16,37,69,289/-, inclusive of all taxes. The

time period for completion of the work was fixed at two months. Pursuant

to the Letter of Award, the petitioner furnished an irrevocable and

unconditional Performance Bank Guarantee, amounting to Rs.

81,88,465/- to the respondent and thereafter, an Agreement was signed

between the petitioner and the respondent on 16^th November, 2018. The

relevant terms and conditions of the Agreement are enlisted as follows:

●Article 1.1 delineates the scope of work.

●Article 2 sets out the „Contract-Documents‟.

Digitally Signed

By:GAURAV SHARMA

Signing Date:24.02.2023

18:21:12

Signature Not Verified

NEUTRAL CITATION NO. 2023/DHC/001374

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●Article 5, thereof, postulates and declares that the agreement shall

be governed by and be construed and interpreted in accordance

with the laws of India and gives exclusive jurisdiction to Delhi

court(s) only.

4.

The work could not be completed within stipulated time periodas

envisaged in the Agreement. Thereafter, the petitioner had completed the

entire work as per the terms and conditions of the Agreement and

obtained the Completion Certificate dated 27^th July, 2021. The petitioner

made a claim, including final bill, Performance Bank Guarantees and

security deposit in terms of the above said Agreement, however, the

respondent denied the said claims entirely.

5.

Being aggrieved by the acts of the respondent, the petitioner

invoked the arbitration clause, i.e. Clause 26 of the Special Conditions of

Contract (hereinafter referred to as „the SCC‟) vide letter dated 19^th

February, 2022 under Section 21 of the Act, 1996, pertaining to

“Settlement of Disputes and Arbitration”. Along with this letter, the

petitioner appended a Statement of Claims in respect of the amounts,

which is reproduced hereunder:

Digitally Signed

By:GAURAV SHARMA

Signing Date:24.02.2023

18:21:12

Signature Not Verified

NEUTRAL CITATION NO. 2023/DHC/001374

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Total

Rs.27,63,01,437/-

6.

The respondent did not reply to the said notice dated 19^th February,

2022 and/or act in accordance with the terms of Clause 26 of the SCC.

Thereafter on 15^th July, 2022, the petitioner filed a petition under Secti