High Court Dismisses Nagar Palika Nokha's Arbitral Dispute Appeal

The Delhi High Court has dismissed Nagar Palika Nokha's appeal against a commercial court's ruling related to an arbitration award favoring Enviro Infra Engineers Pvt. Ltd. The company was contracted for sewage plant maintenance, and the dispute arose over alleged unpaid dues, leading to legal proceedings under the MSMED Act.

The Delhi High Court has rejected an appeal by Nagar Palika Nokha, challenging a commercial court's decision on an arbitration-related matter on Thursday. The dispute involves the enforcement of an arbitration award granted to M/s Enviro Infra Engineers Pvt. Ltd., which concerns unpaid dues related to sewage treatment plant projects.

The division bench, led by Chief Justice Devendra Kumar Upadhyay, dismissed the appeal based on a procedural delay. The case stems from an appeal filed against the January 2024 order of the Commercial Court at Patiala House Courts, New Delhi. The appellant's legal challenge, arguing that the arbitration agreement lacked jurisdiction, failed due to missing time constraints.

In its appeal, Nagar Palika Nokha contended that mandatory conciliation required under the MSMED Act, 2006, was improperly conducted, further disputing the fairness of the arbitration process. Meanwhile, the court directed that the Rs 92 lakh deposit could be released to Enviro Infra if a High Court stay order isn't procured by February 1, when the matter is next listed.

(With inputs from agencies.)