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HIGH COURT OF DELHI
Date of Decision: 11.02.2026
M/S SCS ENTERPRISES THROUGH ITS SOLE PROPREITOR - ASHOK BHATIA .....Petitioner
Through: Mr. Divyam Dhyani and Mr. Parijat Sinha, Advocates.
Through: Mr. Jayesh K. Unnikrishnan, Ms. Smriti Parija and Ms. Sasmita Tripathy, Advocates.
JUDGMENT
HARISH VAIDYANATHAN SHANKAR, J. I.A. 26031/2025 (Stay)
1. The present Application has been filed under Section 151 of the Civil Procedure Code, 1908, seeking the stay of operation and effect of the Letter dated 01.10.2025 issued by the Respondent Nos. 1, 2 & 4.
2. Admittedly, a new vendor has been admitted in pursuance of the Letter dated 01.10.2025, and hence, the present Application is rendered infructuous.
3. In view of the foregoing, the present application stands disposed of. O.M.P.(I) (COMM.) 395/2025 & I.A. 26032/2025 (Dir.)
4. The above-captioned Petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996[1], seeking the following reliefs: “..... (a) Pass an Order directing the Respondent Nos. 1 and 4 to deposit the amount of Rs. 2,82,92,851/- (Rupees two crores eighty two lakhs ninety two thousand eight hundred and fifty one only), being the total amount towards unpaid due as mentioned/ set out in para 12 hereinabove in this Hon'ble Court or a designated escrow account, to secure the amount due to the Petitioner-Firm and to be claimed alongwith damages for illegal termination of the contract in the arbitration proceedings; (b) Pass an Order restraining the Respondent Nos. 1 and 4 from taking any further adverse action against the Petitioner-Finn, including but not limited to blacklisting, issuing any negative ratings on the GeM portal, or otherwise prejudicing the Petitioner's business interests, pending the resolution of the disputes through Arbitration;
(c) Direct Respondent Nos. 1 and 4 to provide the verifìed attendance for the month of July to August, 2025 and till 02.09.2025 in respect of 97 security personnel deployed at the 3 locations specified in the Contract and to collect the movable properties (mentioned in the email dt. 11.09.2025) of the Petitioner-Firm from the premises of the Respondent No.l;
(d) Pass an Order directing the immediate constitution of an
Arbitral Tribunal as per the dispute resolution mechanism of the GeM contract or the Arbitration and Conciliation Act, 1996; and (e) Pass such other and/or further order(s) and/or directions as this Hon'ble Court may deem just and proper in the interests of justice.”
5. Both parties are duly represented by their respective learned counsel who, on instructions, submit that the parties are ad idem in their request that, instead of this Court adjudicating the present petition on merits at this stage, the disputes forming the subject matter of the present lis be referred to arbitration.
6. In view of the aforesaid consensus with regard to the reference of disputes to arbitration and the appointment of an Arbitrator, the parties, by mutual agreement, waive the requirement of compliance with the specific procedure contemplated under the arbitration clause, as well as the formal procedure for appointment of an Arbitrator as otherwise prescribed under the Act.
7. It is stated that the disputes that have arisen between the parties are governed by an arbitration agreement embodied in Clause 16 of the General Conditions of Contract[2] of the Government e- Marketplace[3], which provides for resolution of disputes through arbitration. Clause 16 reads as under:
8. In view of the mutual consent expressed by the parties for the appointment of an Arbitrator, this Court is of the considered view that the commencement of arbitral proceedings ought not to be unnecessarily delayed. Accordingly, and in the interest of justice, it is appropriate that an Arbitrator be appointed to adjudicate the disputes between the parties.
9. It is stated before this Court that the approximate value of the disputes involved in the present matter is Rs. 3,00,00,000/-.
10. Accordingly, this Court requests Hon’ble Mr. Justice G.S. Sistani (Retd.) (Mobile No. & e-mail: ), to enter into the reference to adjudicate the disputes inter se the parties.
11. The learned sole Arbitrator shall be entitled to fees in accordance with the Fourth Schedule of the Act or as may otherwise be agreed to between the parties and the learned sole Arbitrator.
12. The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the Act within a week of entering the reference.
13. The Registry is directed to send a receipt of this order to the learned arbitrator through all permissible modes, including through email.
14. 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.
15. Needless to say, nothing in this order shall be construed as an expression of opinion of this Court on the merits of the controversy between the parties.
16. The present petition filed under Section 9 of the Act shall stand treated as an application under Section 17 of the Act, to be considered and decided by the learned Arbitrator upon entering reference, and appropriate orders shall be passed in accordance with law.
17. Accordingly, the present Petition along with pending application, stands disposed of in the aforesaid terms.
HARISH VAIDYANATHAN SHANKAR, J. FEBRUARY 11, 2026/tk/va