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InformativeDelhi High Court

Upholding Arbitrator's Award: A Lesson in Construction Contract Disputes

Court / Authority

Delhi High Court

Update / Judgement Date

28 Jun 2026

Source

WCP News bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

View Count

Other Legal MattersAlternate Dispute Resolution
Upholding Arbitrator's Award: A Lesson in Construction Contract Disputes
Delhi High Court · WCP News bulletin

Headnote

The High Court of Delhi dismissed the petition seeking to challenge the arbitral award, affirming the rejection of multiple claims by the petitioner related to discrepancies and withheld payments in a construction contract. The court highlighted the lack of substantial evidence for the claims and reiterated the limited scope of interference in arbitration under Section 34 of the Arbitration and Conciliation Act, 1996.

Background

  1. Petitioner, S and S Construction Co., was awarded a tender for construction work valued at approximately Rs. 19.43 crores.
  2. Contract signed on 04.06.2010, with work to be completed within eight months; completion certificate issued on 17.12.2019.
  3. Disputes referred to arbitration; the arbitrator appointed on 19.04.2022.
  4. Of sixteen claims, seven were rejected; the petitioner challenged the rejection of claims regarding withheld amounts and damages.

Court’s Observations

  1. Petitioner failed to provide adequate evidence for claims, particularly regarding the unauthorized withholding of Rs. 13,00,000 and damages suffered.
  2. The court observed that pre-existing notices were provided before deductions, countering the claim that deductions were made without notice.
  3. Re-affirmation that interest charges on mobilization advances were valid under the contract.
  4. Claims for damages under Section 73 of the Contract Act were rejected due to a lack of proof of actual damages suffered due to price changes or prolonged contract durations.
  5. Emphasized the need for joint measurements between parties in support of claims, which the petitioner failed to demonstrate.

Legal Provisions Discussed

  1. Section 34 of the Arbitration and Conciliation Act, 1996.
  2. General Conditions of Contract (GCC) Clauses 2, 10B, 17.
  3. Section 73 of the Indian Contract Act, 1872.

Case Details

S AND S CONSTRUCTION CO vs. UNION OF INDIA THROUGH E E B F D II

Coram: HON'BLE MR. JUSTICE AVNEESH JHINGAN


Full Judgement / Attachment

Full Judgement

Frequently asked questions about Delhi High Court

Where does the Delhi High Court sit and which areas does it cover?
The Delhi High Court sits in New Delhi. It has jurisdiction over the National Capital Territory of Delhi. It was established on 31 October 1966 and is a leading forum for commercial, intellectual property, tax and arbitration matters.
How do I check Delhi High Court case status and judgements?
The official website, delhihighcourt.nic.in, provides case status, cause lists, e-filing and judgements searchable by party, judge or date. Orders are also mirrored on the eCourts Judgments portal (judgments.ecourts.gov.in).
What are the Delhi High Court's Commercial and IP Divisions?
Delhi High Court has original civil jurisdiction, so high-value suits in Delhi are filed directly before it. Its Commercial Division hears commercial disputes, and its Intellectual Property Division, set up in 2021 after the IPAB was abolished, hears patent, trademark and copyright cases. It is also a major forum for tax appeals from the ITAT Delhi Benches and for arbitration petitions.
What is an LPA in the Delhi High Court?
A Letters Patent Appeal (LPA) under Clause 10 of the Letters Patent lets a party challenge certain single-judge orders, typically in writ matters, before a Division Bench. In commercial cases, appeals lie under Section 13 of the Commercial Courts Act instead. Final judgements can be challenged by a Special Leave Petition under Article 136, ordinarily within 90 days.
How can White Collar Professional help with a Delhi High Court matter?
Post your requirement on White Collar Professional to receive proposals from verified Advocates, Chartered Accountants and Company Secretaries, compare them, and pay securely through the platform. This page also tracks the latest Delhi High Court judgements and legal updates as they are reported.