ARB.P./928/2026 of M/S SAINATH SALES AND SERVICES PVT LTD Vs DELHI URBAN SHELTER IMPROVEMENT BOARD on 15 September 2026

O R D E R

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15.09.2026

1. This Petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an independent Sole Arbitrator to adjudicate upon the disputes which have arisen between the Petitioner and the Respondent in relation to Agreement bearing No. 09/EEEC-12/DUSIB/2018-19 dated 28.11.2018.

2. It is stated that the Respondent had issued a Notice Inviting Tender dated 25.06.2018 for Operation, Management and Maintenance of Pay & Use Jan Suvidha Complexes at various locations under Divisions C-10, C-11 and C-12 of the Delhi Urban Shelter Improvement Board. It is stated that the Petitioner emerged successful and the Respondent issued a Letter of

Acceptance dated 31.10.2018, pursuant to which the parties executed the aforesaid Agreement dated 28.11.2018.

3. It is stated that the Petitioner commenced and duly performed the entire scope of services under the Agreement. The contract, initially awarded for a period of one year, was extended on seven successive occasions, after assessment of the Petitioner’s performance by the Respondent. It is stated that the Petitioner completed the entire scope of work on 05.03.2022, whereafter the Respondent issued a Completion Certificate dated 03.10.2022 in favour of the Petitioner.

4. It is stated that despite completion of the work and issuance of the Completion Certificate, various contractual dues of the Petitioner remained unpaid. The Petitioner made repeated representations and reminders seeking release of its outstanding dues, including amounts towards minimum wages differential, security deposit, part payments, ESIC/EPF components, performance security and monthly bills. As per the Petitioner, the aggregate outstanding amount is Rs.11,92,26,890/-.

5. It is further stated that the Petitioner continued to issue reminders to the Respondent, duly acknowledged through official diary entries. According to the Petitioner, the Respondent neither released the outstanding amounts nor disputed the Petitioner’s entitlement or the quantification of the claims. The Petitioner thereafter crystallised its total outstanding claim at Rs.11,92,26,890/-, including accrued interest.

6. It is stated that Clause 14 of the Agreement provides for a two-tier dispute resolution mechanism, whereby the parties were first required to attempt amicable settlement through mediation and, upon failure thereof, the dispute could be referred to arbitration. The Petitioner accordingly issued a

Mediation Notice dated 20.01.2026, calling upon the Respondent to initiate the mediation process within 15 days. The Respondent, however, failed to respond to the said notice or initiate mediation within the stipulated period.

7. Thereafter, the Petitioner issued a Notice dated 27.02.2026 under Section 21 of the Arbitration and Conciliation Act, 1996, invoking the arbitration agreement contained in Clause 14(ii) of the Agreement. However, the Respondent failed to respond to the notice.

8. Since Clause 14(ii) stipulates that the place of arbitration shall be Delhi/New Delhi and the Agreement is subject to the exclusive jurisdiction of the Courts at Delhi, the Petitioner has approached this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996.

9. Notice in the Petition was issued on 22.05.2026.

10. Learned Counsel appearing for the Respondent states that the Respondent has no objection to the present Petition for appointment of an Arbitrator.

11. In view of the fact that disputes have arisen between the parties and there is an arbitration clause in the Agreement, this Court is inclined to appoint an Arbitrator to adjudicate upon the disputes between the parties.

12. Accordingly, Justice Ajay Rastogi, Former Supreme Court Judge (Mob: 9829011638) is appointed as the Sole Arbitrator to adjudicate upon the disputes between the parties.

13. The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.

14. The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within two weeks of entering the reference.

15. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law.

16. Needless to say, nothing in this order shall be construed as an expression on the merits.

17. The present petition stands disposed of in the above terms along with pending application(s), if any.

SUBRAMONIUM PRASAD, J SEPTEMBER 15, 2026 Rahul