M/S Day Night Furniture and Projects Pvt. Ltd. vs. DLF Projects Ltd.
Background
The petitioner sought appointment of a sole arbitrator for disputes under a 2021 Contract Agreement containing an arbitration clause (Clause 101 of the GCC). Both the petitioner and the respondent (a large real-estate developer) agreed to first attempt mediation.
Decision Breakdown
The Court referred the dispute to the Delhi HC Mediation and Conciliation Centre (SAMADHAN) with a three-week window, while also appointing Senior Advocate Mr. Sonal Kumar Singh as sole arbitrator to take over if mediation fails, given the undisputed arbitration clause.
Lesson Learnt
Even in high-value commercial construction disputes between a smaller contractor and a large developer, courts actively push for mediation first while keeping an arbitration fallback ready.