M/S Gupta Bros India vs Public Works Department Housing Government Of Nagaland & Anr.

$~95
* IN THE HIGH COURT OF DELHI AT NEW DELHI
# CNR No. DLHC010524332026
+ O.M.P.(I) (COMM.) 514/2026
M/S GUPTA BROS INDIA .....Petitioner
Through: Mr. S.K. Maniktala, Adv.

versus

PUBLIC WORKS DEPARTMENT HOUSING
GOVERNMENT OF NAGALAND & ANR. .....Respondents
Through: Adv. (appearance not given)
CORAM:
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
ORDER (ORAL)
% 02.11.2026
1. The present petition under Section 9 of the Arbitration and
Conciliation Act, 1996 read with Section 151 of the Code of Civil
Procedure, 1908 has been filed seeking preservation and production of
the measurement books, accounting records and several documents
pertaining to works executed by the Petitioner.

2. The facts of the matter in brief are that the Petitioner was
awarded a contract dated 03.08.2007 by the Respondents for
construction of staff quarters at Dwarka, New Delhi. Though, the
stipulated completion period was 18 months, the work continued
approximately for 19 years, allegedly owing to delays attributable to
the Respondents.

3. Subsequently, a Closure-cum-Financial Settlement Agreement
dated 23.03.2026 was executed, which the Petitioner alleges was
Signature Not Verified
Signed By:PRAGYA
ARORA
Signing Date:04.11.2026
18:58:10
O.M.P.(I) (COMM.) 514/2026 Page 1 of 4

obtained under economic duress and without reconciliation of
accounts.

4. The Respondents have since allegedly refused to furnish the
relevant contractual records, relying upon the said agreement. The
arbitration Clause is contained in Chapter IV of the contract, the same
reads as follows:

“DISPUTES, SETTLEMENTS AND ARBITRATION (CHAPTER-
IV)
1. Any dispute arisen during the progress of the work or after
completion between the parties, to be referred to the Architect’s
through the Engineer-in-charge and the decision of the Architect’s
shall be final and binding on both the parties. If either of the
parties are not satisfied with the decision of the Architect’s or for
withholding any particular amount or bill then in any such case the
dispute shall be decided by a sole ARBITRATOR nominated by the
Secretary P.W.D. NAGALAND. Whomsoever he feels suitable for
the job.

2. All disputes and differences of any kind whatever arising
out of or in connection with the contract or the carrying out the
work at any stage, even for breach of contract or termination of
contract by default under any clause stated in the previous
chapters, and after obtaining the final decision of the Architect’s in
writing (May be in the form of a certificate also), either of the
dissatisfied parties shall serve a written notice to the other party
through the Architect’s (Or directly, with a copy to the Architect's
as per suitability) requiring that such matters in dispute be
arbitrated upon. The period of serving such notice shall be within
four weeks of receiving the final decision of the Architect's. In
absence of the final decision of the Architect's, a notice to be
served to the Architect's asking his final decision and the notice
shall specify the matter of dispute clearly and if the Architect's
final decision is not obtained within three weeks of such notice, the
dissatisfied party shall be entitled to serve the notice for the
Arbitration as aforesaid.

The decision of a sole Arbitrator, who is entitled to settle such
disputes shall be final and binding to both the parties.”

5. The relevant is Clause 4.1 of the Closure Agreement, which
Signature Not Verified
Signed By:PRAGYA
ARORA
Signing Date:04.11.2026
18:58:10
O.M.P.(I) (COMM.) 514/2026 Page 2 of 4

provides that the mutual release and discharge of amount shall become
effective only upon receipt of the financial settlement amount in full.
The Petitioner disputes receipt of the full amount and consequently
constitute the operative effect of the Agreement.

6. Having heard learned Counsel for the Petitioner, this Court is of
the view that the prima facie case for preservation of the relevant
records is made out.

7. The validity of the Closure Agreement and the Petitioner’s
monetary claims are matters for adjudication by the Arbitral Tribunal.

8. However, preservation of the underlying records is necessary to
safeguard the efficacy of the arbitral proceedings.

9. Accordingly, the Respondents are directed to preserve all
relevant measurement books, running account bills, payment records,
leisure extracts, final measurement and other contractual documents
and ensure that the same are not altered, destroyed or tampered with.
The Respondents shall also permit inspection thereof and furnish
copies to the Petitioner within four weeks.

10. Issue notice.

11. Learned Counsel for the Respondents accept notice and submits
that the records are already preserved and the Petitioner is at liberty to
inspect the same at any time.

12. It is clarified that this Court has not expressed any opinion on
Signature Not Verified
Signed By:PRAGYA
ARORA
Signing Date:04.11.2026
18:58:10
O.M.P.(I) (COMM.) 514/2026 Page 3 of 4

the disputes between the parties.

13. All rights and contentions are left open for adjudication of the
Arbitral Tribunal.

14. The petition is disposed of in the aforesaid terms.


OM PRAKASH SHUKLA, J
NOVEMBER 2, 2026/pa




Signature Not Verified
Signed By:PRAGYA
ARORA
Signing Date:04.11.2026
18:58:10
O.M.P.(I) (COMM.) 514/2026 Page 4 of 4