Gsba Builders Pvt Ltd v. Delhi Development Authority

O R D E R

¶1The present petition has been filed by the petitioner seeking appointment of a sole Arbitrator for adjudication of the disputes and claims arising in connection with an agreement dated 10.06.2020 read with Letter of Acceptance dated 04.05.2020.

¶2The aforesaid agreement was in the context of construction work of a Multi-Level Car Parking (MLCP) at Modi Tower, Nehru Place, New Delhi, including all development works and services on EPC (Engineering, Procurement, and Construction) basis, including two years of Operation and Maintenance, by the respondent.

¶3It is the case of the petitioner that during the execution of the construction phase, the project was impacted by various hindrances and factors that were beyond the control of the petitioner, resulting in provisional extension of the completion deadline.

¶4It is submitted by the petitioner that despite these impediments, the The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

petitioner successfully completed the construction work to the complete satisfaction of the respondent which was officially acknowledged vide issuance of completion certificate on 12.02.2026.

¶5The petitioner is aggrieved by the fact that despite full completion of the project and issuance of completion certificate, the respondent arbitrarily sought to impose liquidated damages and also sought to encash certain bank guarantees submitted by the petitioner.

¶6A petition under Section 9 of the Arbitration & Conciliation Act, 1996 has also been filed by the petitioner with regard to the invocation of the said bank guarantees.

¶7The arbitration clause (clause 25 of the General Condition of Contract) in the contract between the parties is in the following terms: Clause 25

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

¶8Issue notice.

¶9Learned counsel, as aforesaid, accepts notice on behalf of the respondent.

¶10Learned senior counsel for the respondent while vehemently disputing the contentions sought to be raised by the petitioner on the merits of the dispute, accedes to the existence of the arbitration agreement and to this Court appointing an independent Sole Arbitrator to adjudicate the dispute between the parties.

¶11He further submits that the respondent is desirous of raising certain counter-claims against the petitioner on account of alleged breaches on the part of the petitioner.

¶12Since the existence of the arbitration clause is evident from a bare perusal of the contract, there is no impediment to constituting an arbitral tribunal for adjudicating the dispute between the parties, as mandated in terms of the judgments of Supreme Court in SBI General Insurance Co. Ltd. v. Krish Spinning, (2024) 12 SCC 1 and Interplay Between Arbitration Agreements under Arbitration Act, 1996 & Stamp Act, 1899, In re, (2024) 6 SCC 1. The said legal position has also been subsequently reiterated and followed by the Supreme Court in Aslam Ismail Khan Deshmukh v. ASAP Fluids Private Limited & Anr., (2025) 1 SCC 502 and Maharashtra State The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Electricity Distribution Co. Ltd. & Ors. v. R Z Malpani, 2026 SCC OnLine SC 553.

¶13Considering the circumstances, with the consent of the parties, Ms. Justice (Retd.) Rekha Palli, former Judge, Delhi High Court is appointed as the Sole Arbitrator to adjudicate the dispute between the parties.

¶14The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing requisite disclosures to the parties as required under Section 12 of the A&C Act.

¶15The learned Sole Arbitrator shall be entitled to fee in accordance with IV th

¶16All rights and contentions of the parties in relation to the claims/ counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law. Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Sole Arbitrator.

¶17Needless to say, the learned Sole Arbitrator would consider the same in accordance with law and take an appropriate decision.

¶18The respondent shall be entitled to raise preliminary objections as regards jurisdiction/ arbitrability, which shall be decided by the learned arbitrator, in accordance with law.

¶19Needless to say, nothing in this order shall be construed as an expression of this Court on the merits of the case.

¶20The petitioner requests that the learned Sole Arbitrator be requested to schedule a date of hearing expeditiously. The petitioner would be at liberty to make a request in this regard to the learned Sole Arbitrator.

¶21The petition stands disposed of in the above terms. SACHIN DATTA, J AUGUST 18, 2026/at/nb The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

* IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010381372026 + GSBA BUILDERS PVT LTD .....Petitioner Through: Mr. J. Sai Deepak, Sr. Adv. alongwith Mr. Ravi Kapoor, Mr. Rishav and Ms. Aditi Singhal, Advocates. versus DELHI DEVELOPMENT AUTHORITY .....Respondent Through: Mr. Ramesh Singh, Sr. Adv. alongwith Ms. Prabhsahay Kuar, SC for DDA alongwith Mr. Aditya Verma, Mr. Siddhant M, Advocates And Mr. Durga Prasad (AE, DDA) CORAM: HON'BLE MR. JUSTICE SACHIN DATTA % 18.08.2026