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2026 Supreme(Online)(Del) 1103

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vikas Mahajan, J
R.K. Jain And Sons Hospitality Services(P) Ltd – Appellant
Versus
New Delhi Municipal Council – Respondent
ARB.P. 14/2026 | I.A. Nos.28-30/2026



Advocates:
For the Appellants/Petitioners: Abhinav Sharma
For the Respondents: Udit Dedhiya, Apurva Sachdev, Preyansh Gupta

In proceedings under Section 11 of the Arbitration and Conciliation Act, 1996, the Court is only required to satisfy itself prima facie as to the existence of an arbitration agreement; all other questions regarding the merits of the dispute are to be adjudicated by the learned Arbitrator.

Headnote:The petitioner filed a petition under S. 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator to resolve disputes arising from an agreement dated 10.06.2011. The core issue concerned the existence of an arbitration clause in the agreement and the subsequent failure of the respondent to address the arbitration request. The court held that, at the stage of S. 11, the primary satisfaction required is the existence of a valid arbitration agreement, after which all other disputes are to be adjudicated by the arbitrator. The main issue was whether a valid arbitration agreement existed to refer the pending disputes. Relying on the existence of Clause 25 of the agreement, which provides for dispute resolution through arbitration, the court observed that since the respondent consented, there were no legal impediments to exercising jurisdiction. The court determined that in proceedings under S. 11, it is not required to decide on the merits of the dispute, but merely to confirm the existence of the arbitration agreement. The petition was allowed, and the parties were referred to the Delhi International Arbitration Centre for the appointment of an arbitrator.

Table of Content
1. existence of arbitration disputes necessitating judicial intervention under s. 11. (Para 1 , 2 , 3)
2. court's role under s. 11 is limited to confirming the existence of an arbitration agreement. (Para 4 , 5 , 6 , 7 , 8)
3. reference of disputes to institutional arbitration with procedural directions. (Para 9 , 10 , 11 , 12 , 13)

O R D E R

1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 [in short ‘Act’] whereby the petitioner seeks appointment of an Arbitrator to adjudicate the disputes between the parties arising out of agreement dated 10.06.2011.

2. Mr. Abhinav Sharma, learned counsel appearing on behalf of the petitioner has invited attention of the Court to Clause 25 of the agreement which provides for settlement of disputes by arbitration. Clause 25 reads thus:

“CLAUSE 25

Settlement of disputes & Arbitration

Except where otherwise provided in the contract, all questions and disputes relating to the meaning of the specification, designs drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the cancellation, termination, completion or abandonment thereof shall be dealt with as mentioned hereinafter:-

(i) If the contractor considers any work demanded of him to be outside the requirements of the contract, or disputes any drawings, record or decision given in writing by the Engineer incharge on any matter in connection with or arising out of the contract or carrying out of the work, to be unacceptable, he shall promptly within 15 days request the Superintending Engineer in writing or written instructions or decision. Thereupon, the Superintending Engineer shall give his written instructions or decision within a period of one month from the receipt of the contractor's letter.

If the Superintending Engineer fails to give his instructions or decision in writing within the aforesaid period or if the contractor is dissatisfied with the instructions or decision of the Superintending Engineer, the contractor may, within 15 days of the receipt of Superintending Engineer's decision, appeal to the Chief Engineer who shall afford an opportunity to the contractor to be heard, if the latter so desires, and to offer evidence in support of his appeal. The Chief Engineer shall give his decision within 30 days of receipt of contractor's appeal. If the contractor is dissatisfied with this decision, the contractor shall within a period of 30 days from receipt of the decision, give notice to the Chairperson, NDMC for appointment of arbitrator/ailing which the said decision shall be final, binding and conclusive and not referable to adjudication by the arbitrator.

(ii) Except where the decision has become final, binding and conclusive in terms of sub-para (i) above disputes or difference shall be referred/or adjudication through arbitration by a sole arbitrator appointed by the Chairperson, NDMC or if there be no Chairperson, the administrative head of the NDMC. If the arbitrator so appointed is unable or unwilling to act or resigns his appointment or vacates his office due to any reason whatsoever, another sole arbitrator shall be appointed in the manner aforesaid. Such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor.

It is a term of this contract that the party invoking arbitration shall give a list of disputes with amounts claimed in respect of each such dispute alongwith the notice for appointment of arbitrator and giving reference to the rejection by the Chief Engineer of the appeal.

It is also a

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