$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment reserved on: 16.12.2025 Judgment pronounced on: 09.04.2026 + O.M.P. (COMM) 337/2017 MINISTRY OF HEALTH & FAMILY WELFARE ...Petitioner Through: Ms. Pratima N Lakra(CGSC), Ms. Kanchan Shakya, Mr. Shailendra kumar Mishra, Mr. Chanakya Kene, Ms. Mansi, Advs.

versus NAGARJUNA CONSTRUCTION LTD. ...Respondent Through: Dr. Amit George, Ms. Rupam Jha, Mr. Adhishwar Suri, Ms. Ibansara Syiemlieh, Mr. Dushyant Kishan Kaul, Mr. Vaibhav Gandhi, Ms. Medhavi Bhatia, Mr. Kartikay Puneesh, Mr. Bhrighu Pamidighantam, Advs.

CORAM:

HON'BLE MR. JUSTICE JASMEET SINGH

J U D G M E N T

1. This is a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, (“the Act”) seeking to challenge the Arbitral Award dated 08.05.2017 (“Award”) passed by the learned Sole Arbitrator in the matter of “M/s Nagarjuna Construction Ltd. v. Ministry Of Health & Family Welfare”.

FACTUAL BACKGROUND

2. The petitioner, namely Ministry of Health & Family Welfare (respondent in the Arbitral Proceedings) invited bids for the execution of the works of construction of medical college and hostel complex at AIIMS, Bhopal.

3. The contract was awarded vide a letter of notification dated 13.04.2010, to the respondent company namely NCC Limited, formerly known as M/s Nagarjuna Construction Co. Ltd. (Claimant in the Arbitral Proceedings) for the works including preparing designs and construction of Medical College & Hostel Complex at AIIMS, Bhopal, Package-I.

4. Pursuant thereto, a contract with value of Rs. 147,89,73,233/- was executed between the parties on 21.05.2010 (“Contract”), with scheduled completion period of project being 15 months i.e., from

27.05.2010 to 26.08.2011.

5. During the execution of works under the Contract, some disputes arose between the parties and the respondent company vide its letters dated 07.11.2014 and 13.12.2014 requested for appointment of Arbitrator by invoking arbitration Clause and also filed a petition under Section 11 of the Act on 07.04.2015 before this Court. However, during the pendency of the proceedings, the Director (PMSSY), Ministry of Health and Family Welfare PMSSY Division vide its order dated 29.05.2015 appointed Dr. Y.P.C. Dangay as the Sole Arbitrator to adjudicate disputes between the parties.

6. The respondent filed its Statement of Claim (“SOC”) before the Arbitrator on 06.07.2015, to which the petitioner filed its written statement along with counter claim on 18.02.2016. Thereafter, on 04.04.2016, the respondent filed rejoinder to the written statement and counter claim.

7. During the Arbitral proceedings, the Arbitrator also visited the site for assessment of the status of work on 27.08.2016, 28.08.2016, 26.11.2016, 27.11.2016 and 16.04.2017.

8. The Arbitrator passed an interim award dated 30.12.2016, directing the release of amount of Rs. 2,95,79,465/- for the Claim No. 1 in favour of the respondent and also, directing the respondent to complete the remaining works by the end of the year.

9. Thereafter, the Arbitrator passed a final Award dated 08.05.2017, allowing most of the claims as raised by the respondent except Claim No. 11, and rejecting all the counter claims filed by the petitioner. The petitioner being aggrieved by the Award has filed the present petition.

SUBMISSIONS ON BEHALF OF THE PETITIONER General Contentions

10. Ms. Lakra, learned CGSC for the petitioner, submits that the Award is in violation of the public policy of India and is patently illegal for reasons apparent on the face of record. The scope of public policy is wide in nature and cannot be restricted in its interpretation. Reliance is placed on DDA v. Manohar Lal, 12006 SCC OnLine Del 46. and Oil & Natural Gas Corporation Ltd. v. SAW pipes Ltd.2

11. It is submitted by the learned counsel that the Arbitrator has failed to take into consideration, the deficiency/delays on part of the respondent by failing to comply with the directions issued by the Arbitrator during hearings. Despite this non-comp