* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 11^th MARCH, 2026 IN THE MATTER OF:

+ O.M.P. (COMM) 53/2026 & I.A. 2281/2026, I.A. 2282/2026 ASHIMA INFRASTRUCTURE PVT LTD .....Petitioner Through: Mr. Manoj Kumar Sahu, Advocate.

versus NORTH DELHI MUNICIPAL CORPORATION .....Respondent Through:

CORAM:

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

1. The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act”) challenging the Arbitral Award dated 28.02.2025 passed by the learned Sole Arbitrator in the arbitration proceedings between “North Delhi Municipal Corporation v. Ashima Infrastructure Pvt Ltd.

2. By way of the Impugned Award, the learned Sole Arbitrator awarded a sum of Rs. 12,01,34,424/-, along with pendente lite and future interest as well as costs of arbitration in favour of the Respondent/NDMC.

3. Brief facts as borne out from the records of the present petition are stated as under:

i. The Petitioner herein is a private limited company engaged in the business of advertisement, publicity, outdoor publicity, etc. The Petitioner approached the Respondent/NDMC, seeking permission to display advertisements at specified parking sites on 18.07.2012. The Respondent/NDMC accepted the Petitioner’s application on 19.10.2012 and called upon the Petitioner to submit a written consent, furnish security deposit, advance license fee and advertisement tax.

ii. On 30.10.2012, the Respondent/NDMC executed a Licence Agreement as well as a No Objection Certificate No. 962 (hereinafter referred to as “NOC”), thereby granting permission for displaying advertisements in a total area of 8890 square feet at sites including Kamla Nagar, Ajmeri Gate and Arya Samaj Road. Pursuant to this, the Petitioner deposited Rs. 26,67,000/- towards security and a further sum of Rs.8,89,000/- as advance Monthly License Fees (hereinafter referred to as “MLF”)

iii. On 27.11.2012 another Licence Agreement No.2 as well as a NOC No. 1613 were executed by the Respondent/NDMC, thereby granting permission for displaying advertisements in an area of 9525 square feet at sites including Videocon Tower, Kalra Hospital and Netaji Subash Place. Again, pursuant to this, the Petitioner furnished a sum of Rs. 28,57,500/- towards security deposit.

iv. Between December, 2012 and January, 2013 the Petitioner by way of several correspondences informed the Respondent/NDMC that it was unable to carry out its operations on account of interference by the Public Works Department (hereinafter referred to as “PWD”).

v. Having come to know of the interference, the Respondent/NDMC wrote to the Engineer-in-Chief of the PWD enquiring them regarding such obstructions being caused under the claim that the roads were transferred from the Municipal Corporation to the PWD. Be that as it may, material on record indicates that on 10.03.2013 the Petitioner was successful in erecting media structures at the specified areas.

vi. It is stated that even though the Petitioner was able to commence its operations of displaying advertisements, hindrances continued to be faced by the Petitioner on part of the PWD. It is the case of the Petitioner that in ignorance of such circumstances that were beyond the Petitioner’s control, the Respondent/NDMC demanded payment of full MLF, even for those sites that were non-operational. Faced with this, the Petitioner was constrained to surrender several flag signs.

vii. Later on 16.01.2014, the Respondent/NDMC came to execute another Licence Agreement No.3 along with NOC No. 4782, thereby granting permission to the Petitioner for displaying advertisements at sites including Patel Nagar and Old Rajender Nagar.

viii. It is stated in a Writ Petition bearing W.P. (C) No. 6439/2013, this Court vide Order dated 25.02.2014, directed a joint survey between the Municipal Corporation of Delhi (hereinafter referred to as “MCD”), PWD as well as the Petitioner herein, in order to identify the sites where me