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ARTICLE · 31 JULY 2025

Dispute Resolution & Arbitration Monthly Update | July 2025

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M/s Mahavir Prasad Gupta and Sons ("Appellant") was awarded a contract by the Government of NCT of Delhi ("Respondent"), for strengthening Road No. 58 from RUB Vivek Vihar to Road No.72...

IndiaLitigation, Mediation & Arbitration
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M/s Mahavir Prasad Gupta and Sons vs Govt. of NCT of Delhi

FAO (COMM) 170/2023 decided on May 31, 2025

Background facts

  • M/s Mahavir Prasad Gupta and Sons ("Appellant") was awarded a contract by the Government of NCT of Delhi ("Respondent"), for strengthening Road No. 58 from RUB Vivek Vihar to Road No.72 for a total contract value of INR 5,16,82,612/- ("consideration") ("Project").
  • The work commenced with effect from 09.12.2014 and the work which was supposed to be completed in three months was completed only on 21.05.2015.
  • In terms of the agreement, the Quality Assurance Unit of GNCTD conducted an inspection of the work site and randomly measured the thickness of the layers at different locations, and found that the actual thickness of some of the layers was significantly below the required aggregate thickness of 165mm. The Appellant submitted the final bill on 16.11.2015, however, the Respondent withheld the Appellant's payments on the ground that the

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