Debarment Orders Exercising Independent Administrative Powers Are Not Arbitrable: Delhi High Court

In NCC Limited v. Airport Authority of India¹, the Delhi High Court considered whether a contractor could invoke Section 9 of the Arbitration and Conciliation Act, 1996 (the "Arbitration Act") to seek a stay of an order debarring it from participating in future tenders issued by a statutory authority. The Court held that the decisive consideration is not whether the allegations underlying the debarment arose during contractual performance, but the source and juridical character of the power exercised. Since the Airports Authority of India had issued the debarment order under an independent statutory and administrative framework, rather than as a contractual remedy, the challenge was held to be non-arbitrable. The petition under Section 9 was consequently dismissed as not maintainable, while the legality, validity, and proportionality of the debarment were expressly left open for determination before an appropriate forum.