$~O-13 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 2095/2025 SACHIN GUPTA PROP MS AGC INFRASTRUCTURE .....Petitioner Through: Mr. D. Singh, Mr. Tarun Diwan, Mr.

B. S. Pathania and Mr. Varun Gupta, Advs. versus GOVT OF NCT OF DELHI THROUGH ITS CHIEF ENGINEER ZONE I IRRIGATION AND FLOOD CONTROL DEPARTMENT & ANR. .....Respondents Through: Mr. Abhinav Sharma, Adv.

CORAM:

HON’BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

O R D E R

% 18.12.2025

1. Heard.

2. Issue notice.

3. Learned counsel for the respondents appears and accepts notice. He is directed to take instructions and file reply, if necessary.

4. The Clause 25(ii) of the Arbitration Agreement which is pressed into service by the petitioner is extracted as under:

“Clause 25(ii)

Except where the decision has become final, binding and conclusive in terms of Sub Para (i) above, disputes or difference shall be referred for adjudication through arbitration by a sole arbitrator appointed by the Chief Engineer, I&FC. If the arbitrator so appointed is unable or unwilling to act or resigns his appointment 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 amount claimed in respect of each such dispute along with the notice for appointment of arbitrator and giving reference to the rejection by the chief engineer of the appeal.

It is also a term of this Contract that no person other than a person appointed by such Chief Engineer, I&FC as aforesaid should act as arbitrator and if for any reason that is not possible, the matter shall not be referred to arbitration at all. It is also a term of this Contract that if the Contractor does not make any demand for appointment of arbitrator in respect of any claims in writing as aforesaid within 120 days of receiving the intimation from the Engineer-in-Charge that the final bill is ready for payment, the claim of the Contractor shall be deemed to have been waived and absolutely barred and the Employer shall be discharged and released of all liabilities under the Contract in respect of these claims.

The arbitration shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) or any statutory modifications or reenactment thereof and the rules made there under and for the time being in force shall apply to the arbitration proceeding under this clause, except for cases falling under para 2(i) or (ii).

It is also a term of this Contract that the arbitrator shall adjudicate on only such disputes as are referred to him by the appointing authority and give separate award against each dispute and claim referred to him and, in all cases, where the total amount of the claims by any party exceeds Rs.

1,00,000/- the arbitrator shall give reasons for the award.

It is also a term of the Contract that if any fees are payable to the arbitrator, these shall be paid equally by both the parties.

It is also a term of the Contract that the arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties calling them to submit their statement of claims and counter statement of claims. The venue of the arbitration shall be such place as may be fixed by the arbitrator in his sole discretion. The fees, if any, of the arbitrator shall, if required to be paid before the award is made and published, be paid half and half by each of the parties. The cost of the reference and of the award (including the fees, if any, of the arbitrator) shall be in the discretion of the arbitrator who may direct to any by whom and in what manner, such costs or any part thereof shall be paid and fix or settle the amount of costs to be so paid.”

(Emphasis supplied)

5. A bare perusal of the afore-noted clause reveals the intention of the pa