M/S INDOGREEN INTERNATIONAL vs DELHI DEVELOPMENT AUTHORITY

Judgment text excerpt

$~34 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 12.05.2026 + O.M.P. (COMM) 448/2023, I.A. 21545/2023 & I.A. 21546/2023 M/S INDOGREEN INTERNATIONAL .....Petitioner Through: Mr. Debesh Panda and Mr. Piyush Pandit, Advs. versus DELHI DEVELOPMENT AUTHORITY .....Respondent Through: Mr. Sanjay Vashishtha, Mr. Siddhartha Goswami, Ms. Geetanjali Reddy and Mr. Aditya Sachdeva, Advocates. 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 (for short „the Act‟) seeking setting aside of the arbitral award dated 17.07.2023 (for brevity „the award‟). 2. The brief facts are that the respondent/ Delhi Development Authority (DDA) invited bids for sale of plots on freehold basis, for construction of a hotel to provide accommodation for the Commonwealth Games 2010 (CWG). The petitioner/ M/S Indogreen International was the successful bidder of a plot located at Hari Nagar and on 04.01.2008 a Demand-cum- Allotment letter was issued. The hotel project was to be made functional within twenty four months from the date of allotment. Clause 3.14 of the tender document reproduced below provides for furnishing of performance security, equivalent to five percent of the bid amount in the form of a bank guarantee. Signature Not Verified Signed By:HONEY ARORA O.M.P. (COMM) 448/2023 Page 1 of 8 Signing Date:14.05.2026 16:39:19 “Clause 3.14: Performance Security The construction of the hotel will have to be completed and made functional within a period of 24 months from the Date of Allotment-cum- Demand letter of the land. The intending Tender purchaser shall be required to deposit the performance security to the tune of 5% of the Bid Amount before the time of execution of the Con