M/S CLS CONSTRUCTION PVT LTD vs M/S S K BUILDERS

Judgment text excerpt

$~50 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 14.07.2025 + FAO(OS) (COMM) 178/2024 & CM APPL. 47202/2024 M/S CLS CONSTRUCTION PVT LTD .....Appellant Through: Mr Manoj Chouhan with Mr Ujjwal Singh Parmar and Ms Neha Raj Singh, Advocates. versus M/S S K BUILDERS .....Respondent Through: Mr Viraj R.Dattar, Sr. Advocate with Mr Mayank Sharma, Advocate. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA VIBHU BAKHRU, J. (Oral) 1. The Appellant has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning a judgement dated 08.08.2024 [impugned judgment] passed by the learned Single Judge of this Court in OMP (Comm) No. 297/2023 captioned M/s S.K. Builders v. M/S CLS Construction Pvt. Ltd. The learned Single Judge allowed the petition and had set aside the arbitral award dated 18.05.2023 [impugned award] on the ground that the sole arbitrator was unilaterally appointed by the Appellant. 2. The dispute between the parties arose in the context of a Memorandum of Understanding dated 20.12.2019 [MoU] entered into in relation to the construction of a railway platform, station building, signal Signature Not Verified FAO(OS) (COMM) 178/2024 Page 1 of 8 Digitally Signed By:TARUN RANA Signing Date:16.07.2025 12:49:42 rooms, gate lodges, staff quarters and other miscellaneous works in connection with doubling of INDARA-PHEPHANA-MAU, Shahganj Section of Varanasi Division of North East Railway. 3. The arbitration agreement (clause 16 of the MoU) reads as under: “16. That the parties undertake to fully abide by the terms and conditions set out in this MOU and not to dispute / agitate upon the same hereinafter in future in any manner whatsoever, or in case any misunderstanding or dispute arises