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R.K. Jain and Sons Hospitality Services Pvt Ltd vs. New Delhi Municipal Council

Arbitration Petition · 2026:DHC:8203Decided 18 Sept 2026New Delhi Bench
ARB.P. 1363/2026CNR: DLHC010359862026
Justice Om Prakash Shukla

Background

The petitioner company sought appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act to resolve a small dispute (about Rs. 1.99 lakh) with the New Delhi Municipal Council arising from a 2023 agreement.

Decision Breakdown

Since the claimed amount was modest, both sides agreed the matter should first go to mediation to see if it could be resolved amicably, and the Court referred it to the Delhi High Court Mediation and Conciliation Centre. As a fallback, since the arbitration clause in the contract was undisputed, the Court directed that if mediation failed by a set date, the Delhi International Arbitration Centre (DIAC) would appoint a sole arbitrator per the contract's own procedure.

Lesson Learnt

For smaller commercial disputes, courts increasingly steer parties toward mediation first, only falling back on formal arbitration if settlement talks fail, saving both time and cost for modest claims.

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