DELHI DEVELOPMENT AUTHORITY Vs. KALWA

JUDGEMENT

(1.) This appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter 'the Act') is directed against a judgment dtd. 31/10/2025 passed by the learned District Judge-02, Central District, Tis Hazari, Delhi (in short 'District Judge') in ARBTN A.(Comm.)No.33/2019, vide which he dismissed the objections under Sec. 34 of the Act filed by the appellant-DDA under Sec. 34 of the Act challenging the Award dtd. 20/5/2014 adjudicated by the sole Arbitrator. For the sake of convenience, the appellant would also be referred to as 'DDA' and respondent would also be referred to as 'Claimant'.

(2.) The respondent is engaged in the business of running parking sites at various places in NCT of Delhi. In a parking tender process for Truck Parking site at Majnu ka Tila, Timarpur, Delhi (hereinafter referred to as the parking site"), the appellant-DDA declared the respondent as the highest bidder and consequently issued an allotment letter bearing No. F.99/11/2010/LPC/Parking/699 dtd. 26/3/2010 at a monthly license fee of Rs.5,11,000.00 for a contract period of three years and directed the respondent to comply with the terms and conditions in the aforesaid allotment letter. The respondent had already deposited two months' license fee as 'earnest money' at the time of submitting tender. He communicated his acceptance vide letter dtd. 29/3/2010 and also deposited advance license fee of three months i.e. Rs.15,33,000.00 adjustable only against the last three months of the contract period as per the terms of the allotment letter. The abovementioned acceptance letter is reproduced as below:

(3.) The respondent in its aforementioned acceptance letter requested for removal of all the unauthorised occupancy/ encroachments and other hurdles and for construction of boundary wall and providing lights and handing over 100% possession of the parking site. The case of the respondent is that vide above reproduced letter, he had apprised DDA about the fact that the parking site could only hold 400-450 trucks, whereas as per the description provided to him, the parking site could be easily utilised for 700 and more trucks. The respondent claims that the parking site was handed over to the respondent on 5/4/2010 with the verbal assurance from the officials of DDA of removing unauthorised and illegal occupancy so also carrying out necessary repairs, light facility, raising boundary walls etc.