RFA(COMM) 183/2025, RFA(COMM) 184/2025
HIGH COURT OF DELHI
RFA(COMM) 183/2025 & CM APPL. 45309/2026
UTTAR PRADESH RAJKIYA NIRMAN NIGAM LTD. .....Appellant
Through: Mr. Rajesh Pathak and Mr. Ishank Gupta, Advs.
VERSUS
M/S NEW S.S. ENTERPRISES & ANR. .....Respondents
Through: Mr. Avinash Mishra and Mr. Satyam Sinha, Advs. for R-1.
Mr. Raj Kumar, Adv. for ESIC/R-2.
RFA(COMM) 184/2025 & CM APPL. 45097/2026
UTTAR PRADESH RAJKIYA NIRMAN NIGAM LTD. .....Appellant
Through: Mr. Rajesh Pathak and Mr. Ishank Gupta, Advs.
VERSUS
ARVIND RAI & ANR. .....Respondents
Through: Mr. Avinash Mishra and Mr. Satyam Sinha, Advs. for R-1.
Mr. Raj Kumar, Adv. for ESIC/R-2.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
HON'BLE MR. JUSTICE VINOD KUMAR
ORDER (ORAL)
20.07.2026 C. HARI SHANKAR, J.
1. Learned Counsel for the parties submit ad idem that the dispute is between the appellant and respondent 1 and that, they have settled the dispute by way a Settlement Agreement dated 12 July 2026, copy of which has been placed on record as Annexure A. The terms of settlement reads thus:
“1. The Contractor acknowledges that the liability to pay the amount of Rs. 69,55,124/- as per the judgment and decree dated 24.12.2024 arises from the wrongful withholding of payments by ESIC, the principal employer. The Contractor also acknowledge that UPRNN was acting merely as a nodel executing agency and not as the ultimate finding or contracting authority. 2. The Contractor agrees not to initiate or proceed with any execution petition in respect of the decree dated 24.12.2024, till the conclusion of the arbitration proceedings initiated by UPRNN against ESIC under the Arbitration and Conciliation Act, 1996.
3. UPRNN irrevocably undertakes that in the event it receives amount pursuant to the arbitration proceedings against ESIC. either through award or settlement, it shall satisfy the decree amount, to the Contractor to the extent of such recovery, after deducting its cost and centage entitlement, if applicable, until the decree amount stands fully satisfied.
4. Both parties agree to fully cooperate in the arbitration proceedings against ESIC and shall not take any steps inconsistent with the mutual understanding recorded in this Agreement.
UPRNN shall keep the contractor fully informed of the arbitration proceedings against ESIC and shall promptly notify the contractor of all hearings and material developments in the arbitration.
5. This Agreement shall not be construed as a waiver of UPRNN’s legal rights under the pending RFA before the Hon’ble High Court, and shall not be deemed as an admission of independent liability of UPRNN beyond its role as executing agency.
6. This Agreement shall be governed by the laws of India and subject to the exclusive jurisdiction of the Court of Delhi.”
2. We have perused the terms of settlement and find them to be enforceable in law. Learned Counsel for the parties are present and undertake on behalf of the respective employee to abide by the terms of settlement. As such, the dispute between the parties do not survive for consideration. The parties shall remain bound by the aforesaid terms of settlement.
3. The appeals stand disposed of in terms of the aforesaid settlement.
VINOD KUMAR, J. JULY 20, 2026