M/S. MAHAVIR PRASAD GUPTA AND SONS vs GOVT OF NCT OF DELHI

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 31.05.2025 + FAO (COMM) 170/2023 M/s MAHAVIR PRASAD GUPTA AND SONS .....Appellant versus GOVT OF NCT OF DELHI .....Respondent Advocates who appeared in this case For the Appellant : Mr M.K. Ghosh and Ms Tina Garg, Advocates. For the Respondent : Mr Tushar Sannu, and Ms Ankita Bhadouriya, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA JUDGMENT TEJAS KARIA, J 1. The Appellant has filed the present Appeal under Section 37 of the Arbitration and Conciliation Act, 1996, („Act‟) being aggrieved by the order dated 23.05.2023 passed by learned District Judge (Commercial Court)- 01, Signature Not Verified FAO (COMM) 170/2023 Page 1 of 43 Signed By:NEELAM SHARMA Signing Date:06.06.2025 09:17:45 Shahdara, District Courts Karkardooma, Delhi („Commercial Court‟) in OMP (Comm) No. 6 of 2021 (‘Impugned Order‟). 2. The Impugned Order has allowed the application under Section 34 of the Act and set aside the Arbitration Award dated 12.10.2020 („Award‟), whereby the learned Arbitral Tribunal had awarded the Appellant a sum of ₹1,76,01,359/- along with interest at the rate of 10% per annum from the date of the Award. 3. The Impugned Order has set aside the Award holding that the Learned Sole Arbitrator was unilaterally appointed by the Respondent and the Award by a person ineligible to be appointed as an arbitrator under Section 12(5) of the Act read with the Seventh Schedule of the Act was against the public policy of India and, thus, liable to be set aside. FACTUAL BACKGROUND: 4. The dispute had arisen out of the contracts entered into between the Appellant and the Respondent for “strengthening of Road No. 58 (Maharaja Surajmal Marg) from RUB Vivek Vihar to Junction on Road No.72 RD” („