ITD Cementation Initiates Arbitration Against DMRC Over Project Dispute

ITD Cementation India Ltd has formally initiated arbitration proceedings against Delhi Metro Rail Corporation (DMRC), escalating a contractual dispute related to infrastructure execution and payment obligations. The move follows months of unresolved claims and signals a legal turn in one of the capital’s key metro development projects.

 

Key Highlights From The Arbitration Filing

 

- The dispute centers around delays, cost escalations, and alleged non-payment for work executed under a metro construction contract awarded by DMRC

- ITD Cementation has invoked the arbitration clause under the contract and filed its statement of claims before the designated tribunal

- The company is seeking compensation for project overruns, variation orders, and interest on delayed payments, with the claim amount expected to run into several crores

 

Legal Context And Procedural Developments

 

- The arbitration is being conducted under the Arbitration and Conciliation Act, 1996, with proceedings likely to be held at the Delhi International Arbitration Centre

- DMRC is expected to file its counterclaims and defense in the coming weeks, as per procedural timelines

- The tribunal will adjudicate on liability, quantum of damages, and compliance with contractual terms

 

Industry Implications

 

- The case underscores growing tensions in India’s urban infrastructure sector, where cost escalations and execution delays often lead to legal recourse

- It may set a precedent for future disputes involving public sector undertakings and private contractors in large-scale transport projects

 

Sources: Business Standard, Economic Times, JusMundi, CaseMine, Indian Kanoon