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Parsvnath Developers Limited vs. Delhi Metro Rail Corporation Ltd.

Original Miscellaneous Petition (Commercial) · 2026:DHC:8331Decided 24 Sept 2026New Delhi Bench
O.M.P. (COMM) 233/2021CNR: DLHC010245482021
Justice Om Prakash Shukla

Background

Parsvnath Developers Limited had filed a petition challenging an arbitral award in its dispute with Delhi Metro Rail Corporation (DMRC), but no one appeared for the petitioner at the hearing, and DMRC's counsel informed the Court that Parsvnath was currently undergoing Corporate Insolvency Resolution Process (CIRP).

Decision Breakdown

Given the petitioner's non-appearance, the Court dismissed the petition for non-prosecution, while granting Parsvnath (or its Insolvency Resolution Professional) liberty to file a restoration application within three months if the cause for pursuing the case still survived.

Lesson Learnt

A company undergoing insolvency proceedings can still lose ground in unrelated litigation if it (or its resolution professional) does not actively pursue pending cases: insolvency status alone does not pause a court's procedural deadlines.

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