Sh. Rajeev Mehta vs Municipal Corporation Of Delhi

Court
Delhi High Court

$~41
* IN THE HIGH COURT OF DELHI AT NEW DELHI
# CNR No. DLHC010536392026
+ ARB.P. 1982/2026
SH. RAJEEV MEHTA .....Petitioner
Through: Mr. Avinash Trivedi, Ms.
Ritika Trivedi and Mr. Rahul
Aggarwal, Advs.
versus

MUNICIPAL CORPORATION OF DELHI .....Respondent
Through: Mr. Sanjay Vashishtha, SC with
Mr. Siddhartha Goswami, Mr.
Aditya Sachdeva, and Ms.
Richa Pandey, Advs.

CORAM:
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
JUDGMENT(ORAL)
% 05.11.2026
1. The present petition has been filed under Section 11(6) of the
1
Arbitration and Conciliation Act, 1996 seeking appointment of an
Arbitral Tribunal in terms of Clause 44 of the NIT/Contract dated
26.10.2022 executed between the parties. The disputes between the
parties arise out of a Work Order dated 14.10.2021, whereby the
Petitioner was awarded civil construction work.

2. The Petitioner contends that despite completion of the work and
passing of the final bill on 09.10.2023, certain amounts remain
outstanding. It is further submitted that the last part payment received
on 26.12.2024.

1
“Act” hereinafter
Signature Not Verified
Signed By:GUNN
Signing Date:06.11.2026
16:50:27
ARB.P. 1982/2026 Page 1 of 5

3. The Petitioner invoked Section 21 notice on 07.07.2026, which
was duly served on the Respondent on 09.07.2026. Clause 44 for the
agreement provides for arbitration clause, which reads as follows:

“CLAUSE 44-DISPUTE RESOLUTION
Arbitration
(a) Procedure
Subject to the provisions of Article 10, any Dispute which is
not resolved amicably shall be finally settled by binding
arbitration under the Arbitration Act. The arbitration shall
be by a panel of under of three arbitrators, one to be
appointed by each Party and the third to be appointed by
the two arbitrators appointed by the Parties. The Parties
requiring arbitration shall appoint an arbitrator in writing,
inform the other Party about such appointment and call
upon the other Party to appoint its arbitrator. If within 15
days of receipt of such intimation, the other party fails to
appoint its arbitrator, the Party seeking appointment of
arbitrator may take further steps in accordance with
Arbitration Act.
(b) Place of Arbitration
The place of arbitration shall be Delhi.
(c) (English Language)
The request for arbitration, the answer to the request, the
terms of reference, any written submission, any orders and
awards shall be in English and if oral hearing take place,
English shall be the language to be used in the hearing.
(d) Enforcement of Award
The Parties agree that the decision or award resulting from
arbitration shall be final and binding upon the Parties and
shall be enforceable in accordance with the provisions of
the Arbitration Act subject to the rights of the aggrieved
parties to secure relief from any higher forum.
Performance during Dispute
(e) Pending the submission of any/or decision on a Dispute
and until the arbitral award is. published, the Parties shall
continue to perform their respective obligations under this
Agreement without prejudice to a final adjustment in
accordance with such award.”

4. Issue notice.

Signature Not Verified
Signed By:GUNN
Signing Date:06.11.2026
16:50:27
ARB.P. 1982/2026 Page 2 of 5

5. Notice is accepted on behalf of the Respondent by Mr. Sanjay
Vashishtha, Standing Counsel.

6. Both parties are ad idem that the matter may be referred to
mediation to explore the possibility of an amicable settlement of
disputes.

7. Acceding to the same, the matter is referred to Delhi High Court
Mediation and Conciliation Centre (SAMADHAN) and the parties are
directed to appear in-person or through their authorized representative
along with their respective Counsel before the Mediation Centre on
17.11.2026.

8. Three weeks’ time is granted for exploring the possibility of
settlement through mediation.

6. If mediation fails, the parties are also ad idem with respect to
reference of the disputes to arbitration. There is no dispute with regard
to the existence of a valid arbitration agreement between the parties.

7. 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.

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

Signature Not Verified
Signed By:GUNN
Signing Date:06.11.2026
16:50:27
ARB.P. 1982/2026 Page 3 of 5

9. Accordingly, Mr. Vishal Singhal, Advocate, Mob No.
9131264764 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 the date of the
mediation report recording failure of settlement.
10. The learned Sole Arbitrator will proceed to the arbitration
proceedings subject to furnishing requisite disclosures as required
under Section 12(2) of the Act.

11. The arbitration shall be carried under the rules and aegis of
DIAC. The learned Arbitrator shall be entitled to fees as per the
Schedule of Fees maintained by the DIAC.

12. It shall be open to the parties to raise all pleas, including
objection as to arbitrability, jurisdiction and limitation etc., before the
learned Sole Arbitrator who shall decide the same in accordance with
law.

13. It is clarified that the observations made herein are only for the
purpose of deciding the present petition. The learned Sole Arbitrator
shall adjudicate the disputes with claims and counter claims
independently and on their own merits, uninfluenced by any
observations contained in the present order.


14. The Registry is directed to send a receipt of this order to Mr.
Vishal Singhal, learned Arbitrator through all permissible modes
including email.

Signature Not Verified
Signed By:GUNN
Signing Date:06.11.2026
16:50:27
ARB.P. 1982/2026 Page 4 of 5

15. Accordingly, the present petition is disposed of in the above
terms.

OM PRAKASH SHUKLA, J
NOVEMBER 5, 2026/ gunn
Signature Not Verified
Signed By:GUNN
Signing Date:06.11.2026
16:50:27
ARB.P. 1982/2026 Page 5 of 5