DIVINE INFRACON PRIVATE LIMITED Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) A preliminary objection has been raised by the Respondent Delhi Development Authority ("DDA") to the maintainability of this appeal against the impugned order dated 17th March 2016 passed by the learned Arbitrator.

(2.) Mr. Ajay Verma, learned Senior standing counsel for the DDA refers to Section 37(2) of the Arbitration and Conciliation Act, 1996 ("Act") and submits that the impugned order does not partake the character of appealable order "accepting the plea referred to in sub-section (2) of sub-section (3) of Section 16" or "granting or refusing to grant an interim measure under Section 17."

(3.) At this stage, it is necessary to advert to the few facts. An allotment-cumdemand letter was issued on 4th January 2008 by the DDA in favour of the Appellant in respect of its bid for Plot No. 4, Sector 13, Dwarka, City Centre, Delhi admeasuring 15,367 sq. m with the Appellant having been the successful bidder for the said plot. As part of the terms and conditions of the said allotment, bank guarantees for a sum of Rs. 12.60 crores was furnished by the Appellant. The Appellant was to complete the construction of a hotel on the said plot within 24 months of the allotment. The fact of the matter is that the said condition could not be complied with. For the purposes of the present order, it is not necessary to examine the contention of the Appellant that its failure to comply with the condition was on account of the DDA failing to comply with its obligations. According to the Appellant, it ran up huge losses as a result.