N L Engineers Private Limited vs Ircon International Limited & Anr.

$~4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
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% Date of Decision:16 April, 2026
+ ARB.P. 1310/2025
N L ENGINEERS PRIVATE LIMITED .....Petitioner
Through: Mr. Raktim Gogoi, Mr. Kaushlendra
D. Pandey, Mr. Arun Bansal and Ms.
Akshita Nigam, Advocates, Advs.
Mob: 9915997088
Email: [email protected]

versus

IRCON INTERNATIONAL LIMITED & ANR. .....Respondents
Through: Mr. Ritesh Singh, Mr. Manish Singh,
Mr. Navneet K. Singh, Mr. Vivek
Vashisth, Mr. Raj Kumar, and Mr.
Manish Arora, Advs.
Mob: 8077158261
Email: [email protected]

CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
MINI PUSHKARNA, J. (ORAL):
1. The present petition has been filed under Section 11(6) of the
Arbitration and Conciliation Act, 1996 (“Arbitration Act”) seeking
appointment of an Arbitrator for adjudication of disputes between the
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parties, arising out of Agreement dated 11 August, 2016 for the supply of
9-metre long RSJ Poles for the R-APDRP, Part-B Projects, in the state of
Jammu & Kashmir.
2. The petitioner had earlier invoked the jurisdiction of the Micro and
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ARB.P. 1310/2025 Page 1 of 4

Digitally Signed
By:HARIOM SHARMA
Signing Date:20.04.2026
20:55:25

Small Enterprises Facilitation Council (“MSME Council”) under Section 18
of the Micro, Small and Medium Enterprises Development Act, 2006
(“MSMED Act”) in the year 2018, seeking resolution of disputes between
the parties. Since the claims of the petitioner could not be settled in
conciliation, the matter was referred to arbitration under the provisions of
the MSMED Act.
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3. The proceedings culminated in an Award dated 30 April, 2024
passed by the MSME Council in Claim Petition No. 04/2018 , in favour of
the petitioner herein. Aggrieved by the said Award, the respondents herein
have preferred a petition under Section 34 of the Arbitration Act, which is
pending before the District Judge, SAS Nagar, Mohali.
4. It is to be seen that the petitioner had initially filed claims before the
MSME Council in the year 2018, claiming certain sums against the
respondents. Subsequently, an amended claim petition was filed by the
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petitioner dated 25 July, 2022 before the MSME Council.
5. The petitioner had approached this Court for appointment of an
Arbitrator earlier as well. However, in view of the claims having been filed
before the MSME Council, the said petition being ARB.P.1124/2022 was
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dismissed as withdrawn vide order 09 February, 2023.
6. The present petition has now been filed by the petitioner on the
premise that no claim in respect of liquidated damages was raised or
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adjudicated upon in the Award dated 30 April, 2024 passed by the MSME
Council. It is the case of the petitioner that the petitioner’s remaining claims
continue to subsist and require adjudication, in accordance with law.
7. This Court notes that in the present case, in terms of the Agreement
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By:HARIOM SHARMA
Signing Date:20.04.2026
20:55:25

between the parties, the petitioner had supplied goods to the respondents in
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four lots, from 06 October, 2017 to 11 June, 2018. As per the case put
forth by the petitioner, certain amounts were deducted by the respondents
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towards liquidated damages on 25 July, 2018. Therefore, it is clear that the
cause of action in respect of liquidated damages arose on that very date. The
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petitioner had instituted its claim before the MSME Council on 16 October,
2018, after the cause of action for liquidated damages had already arisen.
Further, the petitioner had also amended its claims before the MSME
Council by filing an amended Claim Petition in the year 2022.

8. Thus, the petitioner had every opportunity and legal right to raise a
claim for liquidated damages along with the other claims filed before the
MSME Council, but the petitioner chose not to do so. The petitioner did not
raise claim qua liquidated damages even at the time of filing amended claim
before the MSME Council.
9. Once the petitioner had already invoked Section 18 of the MSMED
Act and participated in arbitration proceedings resulting in the Award dated
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30 April, 2024, a second arbitration proceeding for some other claims
arising out of the same cause of action, transaction and contract, would not
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be maintainable. Reference in this regard is also made to the order dated 15
July, 2022 passed by the Supreme Court in Special Leave to Appeal (C) No.
10722/2022 , titled as “ M/s Tantia Constructions Limited Versus Union of
India ” wherein, in similar circumstances, it has been held as follows:
“xxx xxx xxx

Having heard the learned counsel for the petitioner, we are of the firm
opinion that there cannot be two arbitration proceedings with respect to
the same contract/transaction. It is not in dispute that in the present
case, earlier the dispute was referred to arbitration and the Arbitrator
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Digitally Signed
By:HARIOM SHARMA
Signing Date:20.04.2026
20:55:25

passed an award on whatever the claims were made. Thereafter, a fresh
arbitration proceeding was sought to be initiated with respect to some
further claims, may be after final bill. The same is rightly refused to be
referred to arbitration in exercise of Section 11(6) of the Arbitration and
Conciliation Act, 1996. We are in complete agreement with the view
taken by the High Court.

With this, the Special Leave Petition stands dismissed. Pending
application(s), if any, shall stand disposed of.

xxx xxx xxx”
(Emphasis Supplied)


10. It is no longer res integra that principles of res judicata apply to
Arbitration proceedings. Therefore, once an Award has been pronounced
between the parties and the claims sought to be raised now could have been
raised in the earlier arbitral proceedings at that point of time, a prayer for
second reference to arbitration would not be maintainable.
11. In view of the discussion hereinabove, no merit is found in the present
petition. The same is accordingly dismissed.


MINI PUSHKARNA, J
APRIL 16, 2026/KR

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Digitally Signed
By:HARIOM SHARMA
Signing Date:20.04.2026
20:55:25