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M/S Aliyan Construction Co vs. Govt of NCT of Delhi

Arbitration Petition · 2026:DHC:8922Decided 6 Oct 2026New Delhi Bench
ARB.P. 1748/2026CNR: DLHC010468942026
Justice Om Prakash Shukla

Background

A construction company sought appointment of an arbitrator against the Delhi government to resolve a dispute over an approximately Rs. 28 crore claim. Both sides agreed that a valid arbitration clause existed between them and that the disputes should go to arbitration.

Decision Breakdown

Since there was no dispute about the existence of a valid arbitration agreement and the parties agreed to arbitrate, the Court appointed a Senior Advocate as Sole Arbitrator under the aegis of the Delhi International Arbitration Centre (DIAC). The arbitrator was directed to make the disclosures required under Section 12(2) of the Act and was left free to decide all issues, including jurisdiction, independently.

Lesson Learnt

Where parties don't dispute that a valid arbitration clause exists, courts will swiftly appoint an arbitrator under Section 11 without going into the merits of the underlying dispute: those are left entirely to the arbitrator.

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