$~6& 7 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 07.10.2024 + ARB.P. 1493/2024 (6) JHAJHARIA NIRMAN LTD. .....Petitioner Through: Mr. Ashish Dholakia, Sr. Adv.

alongwith Mr. Rakesh Kumar, Ms. Preeti Kashyap, Mr. Ankit Sharma, Mr. Varun Pandit, Mr. Yash Dhaway and Mr. Yash Tiwari, Advocates.

versus SOUTH WESTERN RAILWAYS THROUGH DY. CHIEF ENGINEER/IV CONSTRUCTION .....Respondent Through: Mr. Anurag Ahluwalia, CGSC alongwith Mr. Tarveen Singh Nanda, GP.

+ O.M.P.(I) (COMM.) 280/2024, I.A. 37645/2024, I.A. 40582/2024 I.A. 41040/2024 (7) JHAJHARIA NIRMAN LTD. .....Petitioner Through: Mr. Ashish Dholakia, Sr. Adv.

alongwith Mr. Rakesh Kumar, Ms. Preeti Kashyap, Mr. Ankit Sharma, Mr. Varun Pandit, Mr. Yash Dhaway and Mr. Yash Tiwari, Advocates.

versus UNION OF INDIA THROUGH MINISTRY OF RAILWAYS & ANR. .....Respondents Through: Mr. Anurag Ahluwalia, CGSC alongwith Mr. Tarveen Singh Nanda, GP.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA SACHIN DATTA, J. (Oral ARB.P. 1493/2024

1. The present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the A&C Act) seeks the appointment of a sole arbitrator to adjudicate the disputes between the parties.

2. The disputes between the parties have arisen in the context of a Contract awarded by the respondent to the petitioner for laying down the railway line of 39.906 km from Penukonda to Dharmavaram (Andhra Pradesh), including telecommunication and electrical works. A Request for Proposal (RFP) for the said work was issued on 26.08.2022, pursuant to which the petitioner participated in the tender process and emerged as the lowest bidder.

3. Consequently, a letter of acceptance dated 19.01.2023 was issued in favour of the petitioner, followed by a Contract Agreement dated

05.05.2023.

4. The completion period under the aforesaid Contract was 608 days and four milestones were prescribed under the Contract.

5. The petitioner submitted numerous bank guarantees to the respondent in terms of the relevant Contract conditions. It has been submitted that in terms of the Contract, the respondent was to provide technical drawings/ documents/ land with respect to the execution of the work. However, the respondent was at default in this regard, and in providing timely site clearance to the petitioner. Resultantly, delays were occasioned.

6. It is also the case of the petitioner that numerous clauses of the Contract were violated/ breached by the respondent and the requisite time extensions were also not provided in a timely manner.

7. The disputes/differences between the parties aggravated when the respondent allegedly sought to impose penalty on the petitioner and also withheld significant amounts from the RA Bills raised by the petitioner on the respondent.

8. The Contract between the parties contains a dispute resolution clause which reads as under:-

“ARTICLE 24 DISPUTE RESOLUTION

24.1 Conciliation of Disputes

24.1.1 All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the progress of the work or after its completion and whether before or after the determination of the contract, shall be referred by the Contractor to the "Authority" through “Notice of Dispute" provided that no such notice shall be served later than 30 days after the date of issue of Completion Certificate by the Authority Engineer. Authority shall, within 30 days after receipt of the Contractor's "Notice of Dispute", notify the name of conciliator(s) to the Contractor. In case Authority fails to fix Conciliator within 30 days, Contractor shall be free to approach Dispute Adjudication Board (DAB) for adjudication of Dispute.

24.1.2 The Conciliator(s) shall assist the parties to reach an amicable settlement in an independent and impartial manner within the terms of contract. If the parties reach agreement on a settlement of the dispute, they shall draw up and sign a written settlement agreement duly signed by Authority Engineer, Cont