* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 24^rd MARCH, 2026 IN THE MATTER OF:

+ O.M.P. (COMM) 348/2020 RAMASETHU INFRASTRUCTURE .....Petitioner Through: Mr. Gireesh Kumar and Ms. Sneha Mathew, Advocates, versus INDIAN RAILWAY WALFARE ORGANISATION .....Respondent Through: Mr. Sulaiman Mohd Khan, Ms. Taiba Khan, Mr. Gopeshwer Singh Chandel, Mr. Abdul Bari Khan, Ms. Aditi Chaudhary and Mr. Chandra Bose, Advocates. CORAM:

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

1. The Petitioner seeks to challenge the Award dated 23.12.2014 passed by the Arbitral Tribunal while adjudicating the disputes between the parties under a contract for construction of 140 dwelling units comprising of 20 units of Type A (Type I) (only ground floor), 68 units Type-B (Type II) (only ground floor), 30 units Type C (Type III) (G-FF) and 22 units Type – D (Type IV) (G-FF) Terrace, stair room in Ambattum village near T.I. Cycle factory, Chennai – 600053, including all Civil, internal electrical, plumbing, sewerage, roads, pavements, drains, U/G water tank, sub-station, Boundary wall and gate etc. (hereinafter referred to as “tender work”) at quoted rates or total cost of Rs.16,72,35,219/- on the terms and conditions given in the tender documents as filled in by the Petitioner (formerly known as M/s APR Projects Private Limited).

2. The facts in brief leading to the filing of the present Petition are as under:

a) The Petitioner herein is a private limited company under the Indian Companies Act, 1956 engaged in the business of development of infrastructure and other allied activities. The Petitioner company was formerly known as M/s APR Projects Private Limited.

b) It is stated that on 29.07.2011, the Respondent herein issued a tender notice for the tender work. Pursuant thereto, on 01.08.2011, the Respondent invited bids for the tender work. The project cost was estimated at Rs.14,50,00,000/- as of 01.08.2011 and the last date for submission of bids was 20.09.2011.

c) It is stated that the Petitioner was the successful bidder of the tender invited by the Respondent for the tender work. The Petitioner quoted Rs.16,72,35,219/- as bid amount and the same was accepted by the Respondent.

d) Thereafter, the Respondent vide Letter dated 27.12.2011, accepted the bid of the Petitioner and informed the Petitioner that the completion period of the project is 24 months and also informed that the Earnest Money Deposit (“EMD”) of Rs.5,00,000/- paid by the Petitioner had been retained and converted into security deposit. Further, the balance amount shall be recovered by the Respondent in terms of Clause

6.2.17 of the tender document.

e) It is stated that the Respondent further requested the Petitioner to submit a bank guarantee for an amount of Rs.83,62,000/- as performance guarantee before signing the agreement. The same was submitted by the Petitioner on 12.01.2012. Thus, the total amount deposited by the Petitioner with the Respondent totalled to Rs.88,62,000/- (including EMD).

f) It is stated that except the Letter of Intent dated 27.12.2011, no formal agreement was entered into between the parties. Further, in the Letter of Intent, it was stated that the contract document shall be prepared by the General Manager (SZ) IRWO, Chennai and the Petitioner shall be required to sign the document on hearing from him. Thereafter, the Petitioner mobilized administrative staffs in the month of January, 2012 and officially started commencing the tender work at the project site from 24.02.2012.

g) It is stated that immediately after the commencement of the tender work, the local residents started raising objections and obstructing the work at the project site. The Petitioner sent communications dated 05.03.2012 and 05.04.2012 respectively to the Respondent expressing their inability to continue the work due to the hostile attitude of the local public and non-availability of the encumbrance free site. Whereas, the Respondent after taking into account the communications of t