Contempt proceedings regarding license fee arrears may be disposed of by granting liberty to seek relief before the Arbitrator.

The Petitioner, Delhi Metro Rail Corporation (DMRC), filed contempt petitions against the Respondents regarding disputes arising from a licensing agreement.

In previous proceedings on 27.04.2026, the High Court noted the background and deferred to ongoing arbitral proceedings

Subsequently, the learned Arbitrator heard the matter on 27.04.2026

and issued an order on 04.05.2026 disposing of an application filed by Respondent No. 1 under Section 17 of the Arbitration and Conciliation Act, 1996

DMRC alleged that despite interim protection being granted to the Respondents, the Respondents failed to pay the requisite arrears of license fees

1. Whether the contempt petitions should be entertained in light of the interim orders passed by the learned Arbitrator under Section 17 of the Arbitration and Conciliation Act

2. Whether the Petitioner has the liberty to seek further relief regarding unpaid license fees within the arbitral forum

Section 17 of the Arbitration and Conciliation Act, 1996, which empowers an Arbitral Tribunal to grant interim measures of protection during the pendency of arbitral proceedings

principle of judicial restraint in contempt jurisdiction when a competent specialized forum (the Arbitral Tribunal) is actively seized of the subject matter and has issued substantive orders regarding the disputes

The Court observed that the subject matter of the dispute was currently being adjudicated by a learned Arbitrator, who had already passed specific orders on 27.04.2026 and 04.05.2026

Since the Arbitrator had specifically dealt with the Section 17 application providing interim protection, the Court determined that the grievance regarding the non-payment of license fee arrears—notwithstanding that protection—should be addressed within those same arbitral proceedings

The Court declined to exercise its contempt jurisdiction to resolve the monetary default, instead directing the Petitioner to move the Arbitral Tribunal for appropriate orders, ensuring that the Tribunal remains the primary forum for merits-based decisions

The Court held that the Arbitrator shall decide such applications on their own merits, uninfluenced by the High Court's disposal of the contempt petitions

The petitions were disposed of in these terms on 11.05.2026