Mathra Dass Ahuja And Sons vs Public Works Department

Court
Delhi High Court

$~13
* IN THE HIGH COURT OF DELHI AT NEW DELHI
# CNR No. DLHC010446912026
+ ARB.P. 1682/2026
MATHRA DASS AHUJA AND SONS .....Petitioner
Through: Ms. Yashika Malhotra, Mr.
Sumit Kalra, Mr. Akash, Ms.
Anisha, Advs.

versus

PUBLIC WORKS DEPARTMENT .....Respondent
Through: Mr. Lalitaksh Joshi and Mr.
Keshav Poonia, Advs.

CORAM:
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
JUDGMENT(ORAL)
% 14.10.2026

1. The present petition is filed under Section 11 of the Arbitration
1
and Conciliation Act of 1996 seeking appointment of an Arbitrator
for resolution of disputes between the parties arising out of Agreement
dated 31.12.2019.

2. It is well settled that while exercising jurisdiction under Section
11 of the Act, the scope of enquiry is confined to examining the prima
facie existence of an arbitration agreement.


3. In the present case, the arbitration agreement is contained in
Clause 25(ii) of the aforesaid Agreement. It is reproduced
hereinbelow:
Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
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ARB.P. 1682/2026 Page 1 of 6

"Clause 25: Settlement of Disputes by Conciliation and Arbitration

Except where otherwise provided in the contract, all questions and
disputes relating to the meaning of the specifications, designs,
drawings and instructions hereinbefore mentioned and as to the
quality of workmanship or materials used in the work or as to any
other question, claim, right, matter or thing whatsoever in any way
arising out of or relating to the contract, designs, drawings,
specifications, estimates, instructions, orders or otherwise
concerning the works or the execution or failure to execute the
same whether arising during the progress of the work or after the
Cancellation, termination, completion or abandonment thereof
shall be dealt with as mentioned hereinafter.
25.1 Conciliation: If the contractor considers any work
demanded of him to be outside the requirements of the contract, or
disputes any drawing, record or decision given in writing by the
Engineer-in-Charge; or if the Engineer-in-Charge considers any
act or decision of the contractor on any matter in connection with
or arising out of the contract or carrying out of the work to be
unacceptable and claimed for each dispute to the Conciliator
(Special Director General or the Additional Director General
concerned with the work, as applicable) in the proforma
prescribed in Appendix XVII mentioned in Schedule F, under
intimation to the other party. The Conciliator may then request
each party in writing to furnish a brief written statement describing
the disputes and the points at issue. Each party shall send a copy of
such statement to the other party. At any stage of the conciliation
proceedings, the Conciliator may request a party to submit to him
such additional information as he deems appropriate. When it
appears to the Conciliator that there exist elements of a settlement
which may be acceptable to the parties, he may formulate the terms
of a possible settlement and submit them to the parties for their
observations. After receiving the observations of the parties, he
may re-formulate the terms of a possible settlement in the light of
such observations. If the parties reach agreement on a settlement
of the disputes, they may draw up and sign a written settlement
agreement on non-judicial stamp paper as per Stamp Act. The
Conciliator shall authenticate the settlement agreement and
furnish a copy thereof to each party. The termination of
conciliation proceedings shall be in accordance with Section 76 of
The Arbitration and Conciliation Act, 1996. No party shall be
represented before the said Conciliator by an advocate or legal
counsel. The conciliation proceedings shall be completed within 45
days from the receipt of reference. This time may be enlarged by 15
days by the Conciliator. The conciliation proceedings shall be

1
“Act” hereinafter
Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
17:17:41
ARB.P. 1682/2026 Page 2 of 6

deemed to have been terminated at the end of 60 days from the
receipt of reference.
25.2 Arbitration: If the aforesaid conciliation proceedings fail or
the Conciliator fails to give proposal for settlement within the
aforesaid period, either party may promptly give notice in the
proforma prescribed in Appendix XVIII under intimation to the
other party, to the Chief Engineer or the Superintending Engineer
concerned with the work (as applicable), hereinafter referred to as
the Arbitrator Appointing Authority as indicated in Schedule F, for
appointment of Arbitrator.
However, a party may seek appointment of Arbitrator without
taking recourse to the process of conciliation mentioned in sub-
clause 25.1 above.
In the event of either party giving a notice to the Arbitrator
Appointing Authority for appointment of Arbitrator, the said
authority shall appoint Arbitrator as per the procedure given
below and refer such disputes to arbitration.
(a) Number of Arbitrators: If the contract amount is less than
Rs.100 crore, the disputes may be referred for adjudication by a
sole Arbitrator. If the contract amount is Rs.100 crore or more, the
disputes may be referred to an Arbitral Tribunal of three
Arbitrators.
(b) Qualification of Arbitrators: It is a term of this contract that
each member of the Arbitral Tribunal shall be Graduate Engineer
with experience in execution of public works engineering contracts
and he should have worked earlier at a level not lower than the
Chief Engineer (equivalent to level of Joint Secretary to the
Government of India).
The aforesaid educational qualification and work experience shall
be mandatory for appointment as Arbitrator.
The age of Arbitrator at the time of appointment shall not exceed
70 years. An Arbitrator may be appointed notwithstanding the total
number of active arbitration cases with him.
(c) Parties to select Arbitrator: Based on the criteria specified
above, a list of empanelled Arbitrators has been prepared in
CPWD, and the parties shall have option to select an Arbitrator
from the list sent to them.
25.3 Appointment of Sole Arbitrator: The parties may opt for
appointment of the Arbitrator of the Ministry of Housing and
Urban Affairs. In such cases, the party seeking arbitration has to
submit an express agreement in writing as per Appendix XIX
towards waiver of Section.
12(5) of the Arbitration and Conciliation Act, 1996 along with the
notice for appointment of Arbitrator in the proforma prescribed in
Appendix XVIII, under intimation to the other party. The Arbitrator
Appointing Authority shall, within 30 days of receipt of the said
notice, appoint Arbitrator of the Ministry of Housing and Urban
Affairs as Arbitrator in the matter, provided the other party also
Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
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ARB.P. 1682/2026 Page 3 of 6

submits waiver of Section 12(5), ibid in Appendix XIX within 7
days of the receipt of the said notice.
Where any one of the parties does not opt for the Arbitrator of the
Ministry of Housing and Urban Affairs, or does not submit the
waiver agreement, the Arbitrator Appointing Authority shall
propose five Arbitrators from the list of CPWD Empanelled
Arbitrators, to the party seeking arbitration under intimation to the
other party within 15 days of receiving the notice. The party
seeking arbitration shall give his choice for one of them within 15
days of receiving the list, and the Arbitrator Appointing Authority
shall appoint the chosen personas the Sole Arbitrator within 15
days of the receipt of choice.
It is a term of this arbitration agreement that if the parties fail to
select, within the period prescribed above, an Arbitrator of their
choice from the list of CPWD Empanelled Arbitrators forwarded to
them, the Arbitrator Appointing Authority shall himself select and
appoint Arbitrator from the said list.
25.4 Appointment of Arbitral Tribunal of three Arbitrators: The
Arbitrator Appointing Authority shall prepare two separate lists of
five Arbitrators each from the list of CPWD Empanelled
Arbitrators and send one to the party seeking arbitration and other
to the responding party, within 15 days of the receipt of notice. The
parties will then choose any one Arbitrator from the list provided
to them within 15 days of receipt of the list. The Arbitrator
Appointing Authority shall then appoint those chosen by the
respective parties as Arbitrators and also a third Arbitrator from
the list of CPWD Empanelled Arbitrators to act as presiding
Arbitrator within 15 days of receipt of choice from both the parties.
It is a term of this arbitration agreement that if the parties fail to
select, within the period prescribed above, an Arbitrator of their
choice from the list of CPWD Empanelled Arbitrators forwarded to
them, the Arbitrator Appointing Authority shall himself select and
appoint Arbitrator from the said list.
25.5 Applicable Law: The provisions of the Arbitration and
Conciliation Act, 1996 (Act 26 of 1996) and any further statutory
modification or re-enactment thereof shall be applicable. Further,
the fast-track procedure for arbitration contained in Section 29B of
the said Act shall apply.
25.6 Fee payable to Arbitrator(s): The fee payable to the arbitral
tribunal shall be as per CPWD OM No. 2/2006/SE(TLC)/CG/137
dated 19.11.2019 (or latest amendment) and shall be shared
equally by both the parties.
25.7 Place of Arbitration: The place of arbitration shall preferably
be as mentioned in Schedule F. However, the Arbitral Tribunal
may decide the place in consultation with both the parties.
25.8 Terms of reference: The Arbitral Tribunal shall adjudicate on
only such disputes as are referred to it by the Arbitrator
Appointing Authority and give separate award against each
Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
17:17:41
ARB.P. 1682/2026 Page 4 of 6

dispute referred to him and shall give reasons for the award in all
cases where the total amount of the claim by any party exceeds
Rs.1,00,000.
25.9 Interest on Arbitration award: It is also a term of this
arbitration agreement that where the Arbitral award against any
dispute is for the payment of money, no pre-suit and pendent-elite
interest shall be payable on any part of the Arbitral award."

4. Learned Counsel for the Respondent is not disputing the
arbitration agreement between the parties.

5. In the aforesaid circumstances, this Court finds no impediment
in appointing a Sole Arbitrator.


6. Accordingly, Mr. Chandra Shekhar Mital, Chief Engineer
(Retd.) (Mob. No.9718477697) is appointed as a learned Sole
Arbitrator to adjudicate the disputes arisen between the parties. The
learned Sole Arbitrator shall enter upon the reference within three
weeks from today.

7. The learned Sole Arbitrator will proceed to the arbitration
proceedings subject to furnishing requisite disclosures as required
under Section 12(2) of the Act within three weeks of entering
reference.

8. The arbitration shall be carried under the rules and aegis of
Delhi International Arbitration Centre (“DIAC”). The learned
Arbitrator shall be entitled to fees as per the Schedule of Fees
maintained by the DIAC.

9. It shall be open to the parties to raise all pleas before the learned
Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
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ARB.P. 1682/2026 Page 5 of 6

Sole Arbitrator including and not limited to impleadment of parties,
objections as to arbitrability, jurisdiction etc., who shall consider the
same in accordance with law.

10. It is clarified that the observations made herein are only for the
purpose of deciding the present petition under Section 11(6) of the
Act. The learned Sole Arbitrator shall adjudicate the disputes
independently and on their own merits, uninfluenced by any
observations contained in the present order.

11. The Registry is directed to send a receipt of this order to Mr.
Chandra Shekhar Mital, learned Arbitrator through all permissible
modes including email.

12. Accordingly, the present petition is disposed of in the above
terms. Pending applications, if any, stands disposed of.


OM PRAKASH SHUKLA, J
OCTOBER 14, 2026/at




Signature Not Verified
Signed By:ANUBHAV
TRIPATHI
Signing Date:16.10.2026
17:17:41
ARB.P. 1682/2026 Page 6 of 6