Cyfuture India Private Limited vs Wapcos Limited & Anr.

$~33
* IN THE HIGH COURT OF DELHI AT NEW DELHI
nd
% Date of Decision: 22 April, 2026
+ O.M.P.(I) (COMM.) 171/2026 & I.A. 11034/2026
CYFUTURE INDIA PRIVATE LIMITED .....Petitioner
Through: Mr. N.P.S. Chawla, Mr. Sujoy Datta,
Mr. Surekh Kant Buxy, Mr. Abhinav
Mishra and Mr. Abhishek Chhabra,
Advs.
versus

WAPCOS LIMITED & ANR. .....Respondents
Through: Mr. Sanjay Jain, Sr. Adv. with Mr.
Tushar Sannu, SC, Mr. Mohit
Bhardwaj, Mr. Vaibhav Tripathi, Mr.
Nishank Tripathi, Ms. Harshita, Ms.
Rishika Agrawal, Ms. Priya Tyagi,
Mr. Shreyan Srivastava and Ms. Payal
Rajput, Advs.
Mr. Shambhu Azad, CEO, Mr. Arun
Arora, GM and Mr. Virendra
Dhawan, Dy. CE
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
MINI PUSHKARNA, J. (Oral):

1. The present petition has been filed under Section 9 of the Arbitration
and Conciliation Act, 1996 (“Arbitration Act”) seeking urgent interim
protection against the actions initiated by the respondent no.1 pertaining to
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termination of the Contract dated 02 March, 2023, vide letter dated 16
April, 2026, followed by invocation of the Performance Bank Guarantee on
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17 April, 2026 and initiation of blacklisting proceedings on the very same
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day, i.e., 17 April, 2026.
2. Learned counsel appearing for the petitioner submits that earlier, on
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By:HARIOM SHARMA
Signing Date:21.05.2026
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17 April, 2026 itself, the respondents blacklisted the petitioner. However,
the said order of blacklisting was withdrawn after some time followed by a
Show Cause Notice prescribing/proposing blacklisting.
3. Learned counsel appearing for the petitioner draws the attention of
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this Court to the E-mail dated 17 April, 2026 sent by the respondents, to
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submit that while the E-mail was sent on 17 April, 2026, proposing
blacklisting and granting a period of 15 days to the petitioner for filing the
reply, however, the respondents further directed the petitioner to appear
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before the respondents on 20 April, 2026.
4. Thus, it is submitted that meaningful opportunity is not being granted
by the respondents, as far as the issue of blacklisting is concerned. Further,
blacklisting being a civil death, every breach of a Contract cannot be a cause
for blacklisting. He, thus, submits that reasonable time ought to be granted
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to the petitioner for the purpose of submitting a reply to the notice dated 17
April, 2026.
5. He further submits that the action has been taken against the
petitioner, wherein, termination has been done without following the
safeguards and mechanism, which are prescribed in the Contract. Moreover,
even the Performance Bank Guarantee has been invoked by the respondents
immediately after the termination.
6. He thus, submits that the petitioner needs to be protected from any
further coercive action.
7. Per contra, learned Senior Counsel appearing for the respondents, on
advance notice, points out that the respondent no.1, being a body under the
Ministry of Jal Shakti, provides critical data all over the country for dams,
flood contracts, hydro power projects, etc.
8. It is submitted that since the petitioner has blocked the whole data,
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hence, there is an imperative need that all the services to the respondents are
restored immediately.
9. This Court has been handed over a chart with regard to the interim
measure/technical handover requirements by the respondents, which is
reproduced as under:

10. By reference to the aforesaid, it is submitted that the database and the
backups, including, source code, etc., have to be provided to the respondents
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Signing Date:21.05.2026
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so that the services being provided by the respondent, can be continued
unhindered.
11. The matter requires consideration.
12. Issue notice. Notice is accepted by learned counsel appearing for the
respondents.
13. Let reply be filed, within a period of four weeks, from today.
14. Rejoinder thereto, if any, be filed within two weeks, thereafter.
15. This Court notes the Dispute Resolution Clause between the parties is
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contained in Clause 16 of the General Terms and Conditions dated 13
January, 2023. Clause 16.1 provides for conciliation by way of constitution
of Dispute Resolution Committee (“DRC”) by the respondents.
16. Considering the facts and circumstances of the case, and in view of
the disputes between the parties, this Court deems it fit that conciliatory
process, in terms of Clause 16.1, can be initiated by the parties. In case, the
conciliatory process is not successful and the parties are not able to resolve
their issues through the conciliatory process, then the matter can proceed for
arbitration.
17. The said Clause 16.1 of the General Terms and Conditions, reads as
under:
“xxx xxx xxx

xxx xxx xxx”
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Signing Date:21.05.2026
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18. Considering the aforesaid provision and the disputes that have arisen
between the parties, conciliatory process, in terms of Clause 16.1, can be
initiated by the parties. In case, the conciliatory process is not successful and
the parties are not able to resolve their issues through the conciliatory
process, then the matter can proceed for arbitration, in terms of Clause 16.2
of the agreement between the parties.
19. At this stage, learned counsel appearing for the petitioner submits that
the petitioner is willing to perform the terms and conditions of the Contract,
provided the termination is recalled by the respondents.
20. He further undertakes that any discrepancies in the services, which the
respondents may point out, shall also be removed by the petitioner.
21. This Court takes note of the aforesaid submission of the petitioner.
22. Accordingly, this issue shall be considered by the respondent at the
time of granting hearing to the petitioner.
23. This Court also takes note of the submissions made by learned
counsel appearing for the petitioner that the petitioner undertakes to comply
with the directions of this Court with regard to giving full support to the
respondents for the purposes of restoration of the services of the
respondents.

24. Accordingly, considering the submissions made before this Court, the
following directions are issued:
i. The petitioner shall be granted time of two weeks for filing the reply
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to the notice dated 17 April, 2026, issued by the respondents proposing
blacklisting.
ii. After receipt of the reply of the petitioner, the respondents shall duly
provide hearing to the petitioner and follow all the requisites of Principles of
Natural Justice.
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iii. A Speaking Order shall be passed by the respondent, thereafter, which
shall be duly provided to the petitioner.
iv. If the petitioner is aggrieved by any order passed by the respondents,
the petitioner shall be at liberty to avail remedies, in accordance with law.
v. The petitioner is directed to approach the respondents immediately, in
terms of Clause 16.1 of the General Terms and Conditions. Letter/E-mail, in
this regard, shall be written by the petitioner to the respondents, within a
period of one day.
vi. Upon receipt of said letter/E-mail from the petitioner, the respondents
shall immediately constitute a DRC for the purposes of resolving the
disputes between the parties.
vii. Notice shall be duly given to the petitioner to appear before the DRC.
viii. All the issues, as raised by the petitioner, shall be duly considered by
the DRC. Additionally, all efforts shall be made by the DRC to resolve the
issues, including, issue of payments that are payable to the petitioner and
plea of the petitioner for restoration of the Contract.
ix. In case, the issues are not resolved by the DRC, the parties shall be at
liberty to make a request to this Court for the purposes of appointment of an
Arbitrator in terms of Clause 16.2 of the General Terms and Conditions.
x. No further coercive steps shall be taken against the petitioner by the
respondents, till the next date of hearing.
xi. The petitioner shall take immediate steps to restore all the services of
the respondents. The concerned technical experts and officials of the
petitioner shall extend full cooperation to the technical experts/officials of
the respondents in restoring the services.
xii. The petitioner shall also handover the requisite password/pass code
and data to the officials of the respondents, so that the services of the
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respondents are provided unhindered.
xiii. If the functions of the respondents are restored, in case of any other
glitch, the petitioner shall extend all cooperation to the respondents to ensure
that the services of the respondents are not hindered, in any manner
whatsoever.
xiv. The restoration of the services of the respondents shall be done
expeditiously, within the outer limit of 12 hours, counted from 12 in the
afternoon today.
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25. Re-notify on 22 May, 2026.


MINI PUSHKARNA, J
APRIL 22, 2026/KR

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Digitally Signed
By:HARIOM SHARMA
Signing Date:21.05.2026
12:47:34