Authority: Supreme Court of India (Civil Appellate Jurisdiction)

Order Date: 31 July 2026

Case Overview

  • Parties: Appellant – M/S DMI FINANCE PVT. LTD; Respondents – M/S RCC INFRAVENTURES LIMITED & others.
  • Background: The parties entered into a Memorandum of Understanding (MoU) on 05‑01‑2020 containing an arbitration clause under the Arbitration and Conciliation Act, 1996.
  • Arbitration Initiation: Respondents invoked arbitration by notice dated 27‑07‑2020.
  • Initial Arbitrator Appointment: Delhi High Court, by order dated 02‑11‑2020, appointed Hon'ble Ms. Justice R. Banumathi (former Supreme Court Judge) as the sole arbitrator.
  • Proceedings: After pleadings, evidence recording began. Respondent No. 4, as Claimant Witness No. 1, was cross‑examined on 10‑08‑2025 but left midway due to alleged ill health and did not sign his deposition.
  • Recusal: The sole arbitrator recused herself on 12‑08‑2025.
  • Substitute Arbitrator Appointment by High Court: On 12‑02‑2026, the Delhi High Court appointed Hon'ble Mr. Justice Mukul Mudgal (former Chief Justice, Punjab & Haryana High Court) as a substitute arbitrator.
  • Objection: The appellant objected, arguing that Justice Mudgal had not been mutually accepted at the time of the original appointment and therefore could not be appointed without the appellant’s consent.
  • Supreme Court Intervention: With the parties’ consent and suggestion, the Supreme Court modified the High Court’s order, appointing Justice Sudhanshu Dhulia (former Supreme Court Judge) as the substitute sole arbitrator.
  • Time Extension: The Court extended the time for completion of the arbitration by one year, keeping all other terms and conditions unchanged.

Final Outcome

  • Delay in filing was condoned and leave was granted.
  • Justice Sudhanshu Dhulia was appointed as the substitute sole arbitrator.
  • The arbitration timeline was extended by one year.
  • The appeal was disposed of in accordance with the signed order.
  • All pending applications, if any, were also disposed of.

Topics: Arbitration, Court Order