High Court of DelhiARB.P./1930/2025

Prime Services v. Sanjay Gandhi Memorial Hospital & ANR.

2025-12-04Hon'Ble Mr. Justice Jasmeet Singh7 pages

$~10 *

IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ARB.P. 1930/2025 PRIME SERVICES ....Petitioner Through:

versus SANJAY GANDHI MEMORIAL HOSPITAL & ANR.

.....Respondents Through:

Anubhav Gupta, PC, GNCTD with Dr. Neeraj Kumar Singh, CMO ( NFSG)

CORAM:

HON'BLE MR. JUSTICE JASMEET SINGH

O R D E R

% 04.12.2025 1.

This is a petition filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator for adjudication of disputes between the parties.

The brief facts of the case are that the petitioner participated in a tender process and being a successful bidder was issued a Work Order dated 13.10.2008 for Nursing Orderlies in the premises of Sanjay Gandhi Memorial Hospital, Mangolpuri by the respondents. Thereafter, the parties entered into an Agreement for Class IV/ Nursing Orderly Services dated 15.10.2008. 3.

The said Agreement contained an arbitration clause being Clause No. 19 which reads as under:

"In case of any dispute or difference, the award of the Arbitrator by the Lt. Governor of GNCT of Delhi will be final and binding on the parties to the contract and the court of Delhi/New Delhi shall only have the jurisdiction over the same. "

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The respondents withheld a sum of Rs. 1,00,41,232/- out of the billed amount on instructions from the Assistant Commissioner, Service Tax. 5.

The respondents sought information from Commissioner (CGST) vide letter dated 07.09.2022 regarding objection with regard to release of the payment to the petitioner.

The letter of 07.09.2022 reads as under:

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Since there were disputes between the parties, the petitioner invoked arbitration vide legal notice dated 01.08.2025 and thereafter filed the present petition.

Mr. Gupta, learned counsel appears for the respondents and has addressed oral arguments. He states that the claims of the petitioner are barred by limitation and are stale claims.

In the present case, a perusal of the letter dated 07.09.2022 shows that the amount was withheld by the respondents pursuant to a letter written by the Assistant Commissioner, Service Tax Department. 10.

The fact whether the claims of the petitioner are stale or it is a continuing cause of action, is a mixed question of fact and law which the Arbitrator can only decide after recording evidence and seeing the factual matrix in detail.

11.

The referral Court is only to form prima facie opinion that there are subsisting disputes between the parties. The fact that the cause of action continues to arise on each day when the amount has not been paid, prima facie may be plausible.

12.

For the said reasons, the petition is allowed and the following directions are issued:- i) Ms. Vrinda Kapoor Dev (Advocate) (Mob. No. 9899029387) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

ii) The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Road, New Delhi (hereinafter, referred to as the 'DIAC'). iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018. iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection such as limitation, as well as claims/counterclaims and merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator. vi) The parties shall approach the learned Arbitrator within two weeks from today.

13.

The present petition is disposed of in the aforesaid terms. JASMEET SINGH, J DECEMBER 4, 2025/AS The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.