Delhi Municipal Corp Secures Supreme Court Order

Authority: Supreme Court of India

Order Date: 14 October 2026

Parties: Municipal Corporation of Delhi (North) (appellant) vs M/s Harcharand Dass Gupta (respondent).
Appeals: Civil Appeal Nos. 10378/2017, 10380/2017, and 10379/2017 filed by the Corporation.
Background: The parties entered into an agreement dated 20‑04‑1992 pursuant to a work order issued in 1991 for construction work completed on 18‑09‑1992 (FAO No. 534) and 17‑08‑1992 (FAO No. 535). Payment disputes led to arbitration; the arbitral tribunal rejected the plea of limitation. The Corporation filed objections under Section 34 of the Arbitration and Conciliation Act; the Delhi High Court Single Judge (9 May 2006) held the claim barred by limitation. The respondent filed a Section 37 appeal; the Division Bench set aside the Single Judge’s order and remanded the matter to the arbitral tribunal for fresh determination of limitation, directing filing of pleadings within four weeks.
Counsel: For the appellant – Senior Counsel Yatinder Singh, Praveen Swarup and team; for the respondent – Senior Counsel Harish Malhotra, Dhruv Kapur and team.

The Supreme Court allowed Civil Appeals 10378 and 10380, set aside the Division Bench orders dated 8 Nov 2012, and restored the Section 37 appeals to their original numbers for the High Court to decide on merits and limitation.
The Court directed the High Court to dispose of the Section 37 appeals expeditiously, preferably within four months from the order date.
Both parties agreed to move a joint application for early listing of the Section 37 appeals before the High Court.
Civil Appeal 10379 was dismissed as the plea of limitation was never raised; the related interlocutory applications were disposed of.

Topics: Arbitration, Limitation Plea, Municipal Contract