$~37 & 40 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 24.02.2026 + O.M.P.(I) (COMM.) 507/2025 & I.A. 5107/2026 (For Dir.)

ORIENTAL FOUNDRY PRIVATE LIMITED .....Petitioner Through: Mr. R. Sudhinder, Mr. Ashish Mukhi, Mr. Sanidhya Sonthalia and Mr. Kanishk Pandey, Advocates.

versus UNION OF INDIA & ANR. .....Respondents Through: Mr. Shashank Dixit, CGSC along with Mr. Kunal Raj, Advocate.

40 + ARB.P. 354/2026 ORIENTAL FOUNDRY PVT LTD .....Petitioner Through: Mr. R. Sudhinder, Mr. Ashish Mukhi, Mr. Sanidhya Sonthalia and Mr. Kanishk Pandey, Advocates.

versus UNIION OF INDIA .....Respondent Through: Ms. Shambhavi Sharma, Government Pleader.

CORAM:

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR % JUDGEMENT (ORAL)

HARISH VAIDYANATHAN SHANKAR, J.

ARB.P. 354/2026

1. The present Petition, filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, Act, seeks appointment of a Sole Arbitrator for the purpose of resolution of disputes that are stated to have arisen inter se the parties under Contract bearing No. 2024/RS(l)/954/207/1940 dated 01.08.2024, in terms of the Clause 18 contained therein, which has to be read with the Clause 2905(b) of the Annexure A to the Railway Board Letter No. 2018/TF/Civil/

Arbitration policy dated 12.12.2018 and which read as follows:

“18.0 Settlement of Disputes (Arbitration): The contract will be governed by the arbitration clause with amendments as specified in the Railway Board‟s letter No. 2018/TF/Civil/Arbitration Policy dated 12.12.2018.

CLAUSE 2905(b)

2905(b): Appointment of Arbitrator where applicability of Section 12 (5) of Arbitration and Conciliation Act has not been waived off (i) In cases where the total value of all claims in question added together does not exceed Rs. 50,00,000/- (Rupees Fifty Lakh only), the Arbitral Tribunal shall consist of a Retired Railway Officer, retired not below the rank of Senior Administrative (Trade Officer, as the arbitrntor. For this purpose, the Railway will send a panel of at least four (4) names of retired Railway Officer(s) empanelled to work as Railway Arbitrator duly indicating their retirement dates to the Contractor within 60 days from the day when a written and valid demand for arbitration is received by the General Manager.

Contractor will be asked to suggest to General Manager at least 2 names out of the panel for appointment as arbitrator within 30 days from the date of dispatch of the request by Railway, the General Manager shall appoint at least one out of them as the arbitrator.

(ii) In cases where the total value of all claims in question added together exceeds Rs. 50,00,000/- (Rurees Fifty Lakh only), the Arbitral Tribunal shall consist of three (3) retired Railway Officers, retired not below the rank of Senior Administrative Grade Officer. For this purpose, the Railway will send a panel of at least four (4) names of retired Railway Officer(s) empanelled to work as Railway Arbitrators duly indicating their retirement date to the

Contractor within 60 days from the day when a written and valid demand for arbitration is received by the

General Manager.

Contractor will be asked to suggest to General Manager at least 2 names out of the panel for appointment as Contractor‟s nominee within 30 days from the date of dispach of the request by Railway. The Genreal Manager shall appoint at least one out of them as the Contractor‟s nominee and will, also simultaneously appoint the balance number of arbitrators either from the panel or from outside the panel, duly indicating the „Presiding Arbitrator‟ from amongst the 3 arbitratorts so appointed. General Manager shall complete this exercise of appointing the Arbitral Triunal within 30 days from the receipt of the names of Contractor‟s nominees. While nominating the arbitrators, it will be necessary to ensure that one of them has served in the Accounts Department.”

2. Learned counsel for the Petitioner would submit that the Notice under Section 21 of the Act is dated 05.01.2026.

3. Learned counsel