Delhi High Court Sets Aside Arbitral Award for Reliance on Conciliation Proceedings and Lack of Evidence

Case Snapshot

Case Name: Eco Green Buildtech Pvt Ltd v. Vikartan Infrastructure Pvt Ltd

Citation / Neutral Citation: 2026:DHC:7749 / CNR No. DLHC010300652023

High Court: High Court of Delhi

Bench: Hon'ble Mr. Justice Avneesh Jhingan

Date of Judgment: 10th September, 2026

Area of Law: Arbitration Law, Section 34 of Arbitration and Conciliation Act, 1996, Contract Law

Judgment Headline

Award set aside for relying on conciliation proceedings and awarding damages without evidence.

The Judgment in One Line

Delhi High Court sets aside arbitral award, holding reliance on conciliation proceedings and quantification of damages based on personal experience patently illegal.

Why This Judgment Matters

This judgment reinforces the confidentiality of conciliation proceedings and establishes that statements made during failed conciliation cannot be used in subsequent arbitration. It also clarifies that an arbitrator's personal experience and trade usage cannot substitute the claimant's burden to prove actual loss. The ruling provides important guidance on the evidentiary requirements for claims under Section 73 of the Contract Act—both breach and actual loss must be established.

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