Reliance Elektrik Works vs. Government Of National Capital Territory
Original PDF →Facts
The petitioner, Reliance Elektrik Works (Decree Holder), filed a petition for the enforcement of an Arbitral Award dated March 15, 2024. The award directed the Judgment Debtor, Government of National Capital Territory (GNCTD), to pay a sum of Rs. 2,21,94,173/- plus balance amount, GST, and interest. The award was not challenged by the GNCTD. On August 1, 2025, the Court was informed that the GNCTD would disburse the awarded amount within two months, and an undertaking was to be filed. The petition was disposed of on this basis, with liberty to revive if the undertaking was not complied with. Subsequently, on October 31, 2025, the Court noted that the Pay & Accounts Department of the GNCTD had issued instructions to withdraw all Letters of Credit (LOCs) issued in favour of PWD and I&FC departments, which could impede payment. The Court directed the Pay & Accounts Department to ensure the award amount is deposited for release to the Decree Holder and directed an Executive Engineer to file a response to a contempt notice.
Held
The Court held that the withdrawal of Letters of Credit (LOCs) by the Pay & Accounts Department of the GNCTD, as per their instructions dated October 21, 2025, could impede the payment of the awarded amount to the Decree Holder. This action potentially violates the undertaking given by the GNCTD on August 1, 2025, wherein they committed to disbursing the entire awarded sum within two months. The Court directed the Pay & Accounts Department to ensure that the amount covered under the award is deposited into the relevant bank account, enabling the Court to issue directions for its release to the Decree Holder. Furthermore, the Court issued a contempt notice to Mr. V. A. Gupta, Executive Engineer, PWD, and directed him to file his response by January 8, 2026. The matter was listed for further hearing on the same date. The core issue is the GNCTD's internal financial procedures hindering the execution of a court-ordered award and its prior undertaking.
Key Issues
1. Whether the withdrawal of Letters of Credit (LOCs) by the Pay & Accounts Department of the GNCTD, pursuant to an order dated October 16, 2025, impedes the enforcement of the Arbitral Award dated March 15, 2024, and violates the undertaking given by the GNCTD on August 1, 2025. Petitioner's Arguments: The Decree Holder argued that the Arbitral Award has not been challenged and that the GNCTD had undertaken to disburse the awarded amount within two months from August 1, 2025. The subsequent withdrawal of LOCs by the GNCTD's Pay & Accounts Department hinders the fulfillment of this undertaking and the enforcement of the award. Revenue/State's Arguments: The GNCTD, through its counsel, initially undertook to disburse the awarded amount within two months. However, the judgment notes the issuance of instructions to withdraw LOCs, which appears to be a procedural change by the State's finance department. The judgment does not explicitly record further arguments from the GNCTD regarding the impact of the LOC withdrawal on the undertaking, beyond directing an official to respond to a contempt notice.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2025 EX.APPL.(OS) 1535/2025
On 01.08.2025, this Court passed the following Order:- “1. This petition is filed on behalf of the Decree Holder under Section 36 of Arbitration and Conciliation Act, 1996 read with Order XXI Rule 10 read with Section 151 of CPC for enforcement of Arbitral Award dated 15.03.2024 passed by the Sole Arbitrator awarding a sum of Rs. 2,21,94,173/- plus balance amount against Claim No. 1 and GST as per Claim No. 8 with interest against Claim No.
Learned Arbitrator has also granted interest @ 12% per annum on the awarded amount from the date of the award till date of actual payment.
Learned counsel for Decree Holder submits that the Arbitral Award has not been challenged by the Judgment Debtor and therefore there is no impediment This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/11/2025 at 13:01:44
in enforcement of the award. He further submits that the award was pronounced on 15.03.2024 and till date not a penny has been received by the Decree Holder.
Mr. Tushar Sannu, learned counsel for GNCTD, on instructions, from Mr. V.A. Gupta, Executive Engineer, PWD submits that the entire awarded amount will be disbursed to the Decree Holder within a period of two months from today. The undertaking given on behalf of the Judgment Debtor is taken on record. Let an affidavit of undertaking be filed on behalf the Judgment Debtor within one week from today.
Petition is disposed of in the aforesaid terms along with pending application with liberty to the Decree Holder to seek revival of the petition in case the undertaking is not complied with.”
The Engineer in Chief, PWD is directed to be present in Court to assist the Court on the next date of hearing.
The Account No.(33105162528) is being attached.
During the course of hearing, it has also been brought to this Court’s notice that on 21.10.2025, the Pay & Accounts Department of the JD has issued the following instructions to the State Bank of India which reads as under:- “Please refer to Finance Department, Govt. of NCT of Delhi's order No.F.No.F.1/8/Pr.AO/ T-II/LOC Matter/2025-26/1795-1807 dated 16.10.2025 vide which issuance of Letter of Credit to the divisions of PWD and I&FC has been dispensed off.
This office has issued Letter of Credit (LOC) in favour of all the divisions of Public Works Department and Irrigation & Flood Control Department through various letters of this office upto 16.10.2025. 2. 3. in view of above, I am directed to inform you that the Competent Authority has ordered that all the LOCs This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/11/2025 at 13:01:44
issued in favour of all the divisions of Public Works Department and Irrigation & Flood Control Department stands withdrawn with immediate effect. Henceforth, no payments shall be released against these LOCs to any divisions of PWD and I&FC.”
The Pay & Accounts Dept. is directed to ensure that the amount which is covered under the Award dated 15.03.2024 is deposited to the bank account so that directions can be given to the bank to release the amount in favour of the Decree Holder.
Mr. V. A. Gupta is directed to file his response to the Contempt Notice issued by this Court on or before 08.01.2026. 7. List on 08.01.2026 at 02:30 PM.
SUBRAMONIUM PRASAD, J OCTOBER 31, 2025 Prateek
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/11/2025 at 13:01:44
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.