RAILWAYS BOARD, MINISTRY OF RAILWAYS vs TITAGARH RAIL SYSTEMS LIMITED

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 20.02.2026 Judgment pronounced on: 26.02.2026 + O.M.P. (COMM) 475/2024, CAV 546/2024, I.A. 44540/2024, I.A. 2435/2025, I.A. 4546/2025 RAILWAYS BOARD, MINISTRY OF RAILWAYS .....Petitioner Through: Mr. Shashank Garg, Sr. Adv. with Mr. Husain Taqvi, Ms. Nishtah Jain, Ms. Aradhya Chaturvedi and Ms. Vidhi Gupta, Advs. versus TITAGARH RAIL SYSTEMS LIMITED .....Respondent Through: Mr. Akhil Sibbal, Sr. Adv. with Mr. Rishi Agarwal, Ms. Aanchal Mullick, Mr. Daksh Arora, Ms. Shubhi Agarwal, Mr. Krishneshbapat and Mr. Manan Bansal, Advs. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN JUDGMENT 1. This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short „the Act‟) is filed aggrieved of the arbitral award dated 05.08.2024 (hereinafter „the award‟). Signature Not Verified Signed By:HONEY O.M.P. (COMM) 475/2024 Page 1 of 15 ARORA Signing Date:26.02.2026 17:39:10 BRIEF FACTS 2. The brief facts are that the petitioner issued a notice inviting tender for „Manufacture and Supply of BCNAHSM1 Wagons‟. The respondent was the successful bidder. On 30.09.2020 a contract valuing Rs.499,56,48,000/- for 1652 wagons was awarded. 2.1 There was a dispute between the parties with regard to re- fixation of the delivery period, the imposition of liquidated damages (for short „LD‟) and denial clause. The petitioner on 20.03.2023 short- closed the contract; cancelled the supply of balance 390 wagons and forfeited the bank guarantee. 2.2 On 29.05.2023, the respondent issued a notice under Section 21 of the Act and vide letter dated 11.08.2023 proposed the name of one arbitrator. Petition filed by the respondent under Section 11 of the Act was withdrawn on 03.10.2023. The respondent on 17.10.2023 consented for fast-