NATIONAL RESEARCH DEVELOPMENT CORPORATION & ANR. vs MAK CONTROLS AND SYSTEMS PRIVATE LIMITED

Judgment text excerpt

$~30 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 11.02.2026 + O.M.P. (COMM) 488/2023 NATIONAL RESEARCH DEVELOPMENT CORPORATION & ANR. .....Petitioners Through: Mr. Joydeep Sarma, Mr. Kaushal Kapoor, Mr. Lalit Verma & Mr. A P Singh, Advs. versus MAK CONTROLS AND SYSTEMS PRIVATE LIMITED .....Respondent Through: Mr. Satyam Thareja, Mr. Rakesh Karela & Mr. Shaurya Katoch, Advs. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN AVNEESH JHINGAN, J. (ORAL) 1. This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (in short „the Act‟) against the Award dated 07.08.2023. 2. The facts shorn of unnecessary details are that the petitioners/claimants on 06.03.2002 entered into a „Programme Aimed at Technological Self Reliance‟ agreement (for short „the agreement‟) with the respondent. The respondent was given financial assistance to develop a product „Mak World Traker‟. The agreement was for a period of twelve years. A royalty agreement of even date was also executed between the parties. The respondent at end of each financial year, for five years from start of commercial sale of product had to pay royalty of Rs.24 Lakhs per annum. The respondent completed the Signature Not Verified Signed By:CHANCHAL O.M.P. (COMM) 488/2023 Page 1 of 9 Signing Date:17.02.2026 10:44:38 project in the year 2007 but failed to commercialize it. The nil annual royalty returns were filed due to non-commencement of commercial production. Notice under Section 21 of the Act dated 24.06.2019 was issued by the petitioners. The notice was responded to on 02.07.2019 stating that there is no liability to pay royalty. The Arbitrator was appointed by this court under Section 11 of the Act. 3. The claim of the petitioners for royalty totaling to Rs.1,20,00,000/- was rejected