The Delhi High Court has dismissed an appeal by Rajasthan’s Nokha Municipal Council, which contested the enforcement of an arbitration award that led to the attachment of “Bikaner House” in New Delhi. The bench, comprising Chief Justice D K Upadhyaya and Justice Tushar Rao Gedela, ruled out the appeal on Thursday, primarily due to the excessive delay in approaching the appellate forum since the initial judgment in January 2024.
This legal strife originated from a 2020 arbitration decision favoring Enviro Infra Engineers Private Limited, which arose over contractual disputes related to a sewage treatment plant project initiated in 2011. The project, intended for design and construction by Enviro Infra Engineers, spiraled into legal confrontations following alleged non-compliance with financial obligations by the Nokha Municipal Council.
Subsequently, a district court affirmed the arbitration award last year and proceeded with the attachment of Bikaner House—a property owned by the municipal council—after it failed to clear the dues. The council’s appeal against this attachment was dismissed in January 2024, affirming the award’s finality.
In their plea to the high court, the municipal council argued that the arbitration was baseless as the original agreement lacked an arbitration clause. Furthermore, they claimed the arbitration process violated principles of natural justice, asserting that the council was not given a fair opportunity to present its case.
However, the High Court dismissed these claims, citing delays and lack of substantial legal grounds to overturn the lower court’s decisions. The council had made a recent payment of Rs 92 lakh towards the arbitral award, which led to a temporary stay on the attachment of Bikaner House, extended until February 1.
