Shree Karni Light House vs Union Of India
- Court
- Delhi High Court
$~67
* IN THE HIGH COURT OF DELHI AT NEW DELHI
# CNR No. DLHC010391042026
+ ARB.P. 1496/2026
SHREE KARNI LIGHT HOUSE .....Petitioner
Through: Mr. Rajender Khatter, Mr.
Sukhdev Singh and Mr. Tarun
Sai, Advs.
versus
UNION OF INDIA .....Respondent
Through: Ms. Radhika Bishwajit Dubey,
CGSC with Ms. Disha
Choudhary, Ms. Gurleen Kaur,
Mr. Kritarth Upadhyay and Mr.
Prateek Gautam, Advs.
CORAM:
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
JUDGMENT(ORAL)
% 24.08.2026
1. By way of the present petition, the Petitioner seeks appointment
of learned Sole Arbitrator under Section 11 of the Arbitration and
Conciliation Act, 1996 for resolution of disputes arising between the
parties herein.
2. The Petitioner purports that it is a supplier of electrical items for
Indian Railways since 2019. Its bid against an E-Tender floated by the
Respondent came to be accepted in September 2025 for a total value
of Rs. 2.62 crores.
3. In furtherance thereof, the Petitioner furnished earnest money
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towards security deposit and performance bank guarantee.
4. According to the Petitioner, in December 2025, it placed
purchase orders for the execution of the work. However, on
02.02.2026, the Respondent issued a general correspondence for
termination stating that there was a discrepancy in the name of the
Petitioner firm while participating in the e-Tender as compared to its
Electrical Contractor’s license.
5. Thereafter, on 26.02.2026, the Respondent issued a Termination
Notice citing reasons that the Petitioner did not undertake any action
to commence work or show adequate progress within 48 hours of the
notice dated 02.02.2026 and since the 48 hours stood expired, the
contract stood rescinded in terms of Clause 62 of the Standard General
1
Conditions of Contract .
6. Aggrieved by the unilateral termination, the Petitioner invoked
arbitration as provided under Clause 64 (1) of the SGCC. The relevant
portion is extracted hereinbelow:
“64.(1): Demand for Arbitration:
64.(1)(i): In the event of any dispute or difference between the
parties hereto as to the construction or operation of this contract,
or the respective rights and liabilities of the parties on any matter
in question, dispute or difference on any account or as to the
withholding by the Railway of any certificate to which the
Contractor may claim to be entitled to, or if the Railway fails to
make a decision within 120 days, then and in any such case, but
except in any of the "excepted matters" referred to in Clause 63.1
of these Conditions, the Contractor, after 120 days but within 180
days of his presenting his final claim on disputed matters shall
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“SGCC” hereinafter
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demand in writing that the dispute or difference be referred to
arbitration.
64.(1)(ii)(a): The demand for arbitration shall specify the matters
which are in question, or subject of the dispute or difference as
also the amount of claim item-wise. Only such dispute or
difference, in respect of which the demand has been made, together
with counter claims or set off, given by the Railway, shall be
referred to arbitration and other matters shall not be included in
the reference.
64.(1)(ii)(b): The parties may waive off the applicability of Sub-
Section 12(5) of Arbitration and Conciliation (Amendment) Act
2015, if they agree for such waiver in writing, after dispute having
arisen between them, in the format given under Annexure XV of
these conditions.
64.(1)(iii)(a): The Arbitration proceedings shall be assumed to
have commenced from the day, a written and valid demand for
arbitration is received by the Railway.
64.(1)(iii)(b): The claimant shall submit his claims stating the facts
supporting the claims alongwith all the relevant documents and the
relief or remedy sought against each claim within a period of 30
days from the date of appointment of the Arbitral Tribunal.
64.(1)(iii)(c): The Railway shall submit its defence statement and
counter claim(s), if any, within a period of 60 days of receipt of
copy of claims from Tribunal, unless otherwise extension has been
granted by Tribunal.
64.(1)(iii)(d): Place of Arbitration: The place of arbitration would
be within the geographical limits of the Division of the Railway
where the cause of action arose or the Headquarters of the
concerned Railway or any other place with the written consent of
both the parties.
64.(1)(iv): No new claim shall be added during proceedings by
either party. However, a party may amend or supplement the
original claim or defense thereof during the course of arbitration
proceedings subject to acceptance by Tribunal having due regard
to the delay in making it.
64.(1)(v): If the Contractor(s) does/do not prefer his/their specific
and final claims in writing, within a period of 90 days of receiving
the intimation from the Railways that the final bill is ready for
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payment, he/they will be deemed to have waived his/their claim(s)
and the Railway shall be discharged and released of all liabilities
under the contract in respect of these claims.”
7. It also emerges from the record that the petitioner served
Notice dated 13.03.2026 to the Respondent in accordance with Section
21 of the Act.
8. Issue Notice.
9. Ms. Radhika Bishwajit Dubey, learned CGSC appearing on
behalf of the Respondent accepts Notice.
10. Learned Counsel appearing for the Respondents on instructions
submits that she has no objection for the appointment of the learned
Sole Arbitrator.
11. Therefore, the parties are ad idem with respect to reference of
the disputes to arbitration.
12. The inquiry of this Court is limited to the existence of a valid
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arbitration agreement at the referral stage under Section 11 of the
Act.
13. Therefore, in view of Clause 64(1) of the SGCC, this Court
finds no impediment in appointing a Sole Arbitrator.
14. The claim amount is stated to be Rs. 16,14,030/-.
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SBI General Insurance Co. Ltd. v. Krish Spinning, 2024 SCC OnLine SC 1754
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Signed By:GUNN
Signing Date:01.09.2026
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15. Accordingly, Ms. Anamika Tiwari, Advocate (Mobile No.
9821127838), is appointed as the Sole Arbitrator to adjudicate the
disputes arising between the parties.
16. 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.
17. 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.
18. It shall be open to the parties to raise all pleas, including
objection as to arbitrability and jurisdiction, before the learned Sole
Arbitrator who shall decide the same in accordance with law.
19. 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 with
claims and counter claims independently and on their own merits,
uninfluenced by any observations contained in the present order.
20. The Registry is directed to send a receipt of this order to Ms.
Anamika Tiwari, learned Arbitrator through all permissible modes
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including email.
21. Accordingly, the present petitions are disposed of in the above
terms.
OM PRAKASH SHUKLA, J
AUGUST 24, 2026/at
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Signed By:GUNN
Signing Date:01.09.2026
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