ESI CORPORATION vs M/S DESIGN ASSOCIATES

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 12 January 2026 Judgment pronounced on: 16 January 2026 + O.M.P. (COMM) 242/2024 ESI CORPORATION .....Petitioner Through: Mr. Vikrant Pachnanada with Mr. Mukul Katyal & Ms. Bhavya Sheetal, Advocates. versus M/S DESIGN ASSOCIATES .....Respondent Through: Mr. Rajshekhar Rao, Senior Advocate Mr. Arjun Dewan, Mr. Arjun Mukherjee, Mr. Akash Arora and Mr. A.D. Narang, Advocates. 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 29.01.2024 (hereinafter „the award‟). 2. The facts in brief are that the respondent/claimant is engaged in the business of providing Architectural, Designing and ancillary services. On 29.05.2008, the parties entered into a contract for face- lifting, modernization, extension and up-gradation of the ESIC Hospital building at Andheri, Mumbai (hereinafter „Contract I‟). The parties entered into another contract on 12.11.2010 for construction of a Post-Graduate Hostel/Nursing College at ESIC Hospital, Andheri, Signature Not Verified Signed By:AWANISHO.M.P. (COMM) 242/2024 Page 1 of 12 CHANDRA MISHRA Signing Date:16.01.2026 13:30:12 Mumbai (hereinafter „Contract II‟). The duration of Contract I and Contract II was thirty-six months and thirty months respectively. The respondent was entitled to a fee of 3% of the contract value. 2.1 The original estimated cost of Contract I and Contract II was Rs.142.50 crores and Rs.47.11 crores respectively. The respondent furnished two performance guarantees. Disputes arose between the parties with regard to the prolongation of the project and revision of the scope of work. The arbitration was initiated at t