IN THE HIGH COURT OF DELHI AT NEW DELHI
AHLUWALIA (CONTRACTS) INDIA LIMITED – Appellant
Versus
AIIMS THROUGH SUPERINTENDING ENGINEER & ANR. – Respondent
ARB.P.-2131/2025
$~6 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 04.02.2026 + ARB.P. 2131/2025 AHLUWALIA (CONTRACTS) INDIA LIMITED .....Petitioner Through: Dr. Amit George, Mr. Shashwat Kabi and Mr. Vaibhav Gandhi, Advocates versus AIIMS THROUGH SUPERINTENDING ENGINEER & ANR. .....Respondents Through: Mr. Debarshi Bhadra, Advocates for R-1 & 2 Mr. Kunal Sabharwal, Advocate for AIIMS CORAM:
HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR % JUDGEMENT (ORAL)
1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 [“the Act”], seeking the appointment of Sole Arbitrator to adjudicate the disputes between the parties arising out of the Contract dated 29.05.2015 [“Agreement”].
2. The said Agreement contains an Arbitration Clause, being Clause 67 of the General Conditions of Contract [“GCC”], which reads as under: “67.3 Arbitration
67.3.1 Any dispute and differences relating to the meaning of the specifications, designs, drawings and instructions herein before mentioned and as to the quality of workmanship or materials used in the work or as to any other question, claim, right, matter or thing Signature Not Verified whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, 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 completion or abandonment thereof in respect of which :-
a) The decision, if any, the Engineer has not become final and binding pursuant to Sub Clause 6 7. I and b) Conciliation has not been reached as per the provisions of Clause 67.2 Shall be referred to the Sole Arbitration of a person appointed by the Chairman and Managing Director (CMD) of HSCC (I) Ltd. from the panel of Arbitrators approved by All India Institute of Medical Sciences, Ansari Nagar, New Delhi. Such Arbitrator shall be appointed within 30 days of the receipt of letter of invocation of Arbitration duly satisfying the requirements of this clause.
67.3.2. If the Arbitrator so appointed resigns his appointment, is unable or unwilling to act due to any reason whatsoever, or dies, the Chairman and Managing Director aforesaid or in his absence the person discharging the duties of CMD of HSCC (I) Ltd. may appoint a new Arbitrator in accordance with these terms and conditions of the contract, to act in his place and the new Arbitrator so appointed may proceed from the stage at which it was left by his predecessor.
67.3.3. It is a term of the contract that the party invoking the Arbitration shall specify/ the dispute/differences or questions to be referred to the arbitrator under this clause together with the amounts claimed in respect of each dispute.
67.3.4 The Arbitrator may proceed with the Arbitration ex-parte, if either party, in spite of a notice from the Arbitrator, fails to take part in the proceedings.
67.3.5 The work under the contract shall continue, if required, during the Arbitration proceedings.
67.3.6 The Arbitrator shall make speaking Award and give reasons for his decision in respect of each dispute/claim alongwith the sums awarded separately on each individual item of dispute or difference Signature Not Verified or claims. The Arbitrator shall make separate award on each reference made to him.
67.3.7 The award of the Arbitrator shall be final, conclusive and binding on both the parties.
67.3.8 Subject to the aforesaid, the provisions of the Arbitration & Conciliation Act, I996 or any statutory modifications or re- enactment thereof and the Rules made thereunder and for the time being in force shall apply to the Arbitration proceedings and Arbitrator shall publish his Award accordingly.”
3. The material on record indicates that the Petitioner herein invoked arbitration in terms of Section 21 of the Act vide legal notice dated 04.06.2025.
4. This Court is mindful of the limited scope of judicial interference at the stage of consi
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