Summary: The Delhi High Court has chosen a new arbitrator in a case between M/S RCC Infraventures Ltd. and M/S DMI Finance Pvt. Ltd. after the previous arbitrator stepped down. The court addressed issues of alleged bad behavior and explained the legal steps involved.
In this case, RCC Infraventures Ltd. and DMI Finance Pvt. Ltd. were involved in a disagreement that led to arbitration. The arbitration agreement was part of a Memorandum of Understanding (MoU) dated January 5, 2020. When disagreements came up, arbitration started on July 27, 2020.
Justice R. Bhanumathi, a retired Supreme Court judge, was chosen as the only arbitrator on November 2, 2020. The arbitration began, but problems came up during the questioning of a witness, Mr. Luv Jain, on August 10, 2025, because of a medical emergency.
"The questioning of the first witness, Mr. Luv Jain, was set for August 10, 2025; however, due to a medical emergency involving Mr. Jain, it could not be finished."
On August 12, 2025, Justice Bhanumathi stepped down, which meant a new arbitrator was needed. RCC Infraventures Ltd. filed under sections of the Arbitration and Conciliation Act, 1996, to appoint a replacement arbitrator.
DMI Finance Pvt. Ltd. claimed that Mr. Luv Jain behaved badly, suggesting his actions caused the arbitrator to step down. They wanted the court to punish RCC Infraventures Ltd. with extra costs and even start serious proceedings against them. However, the court found these claims not strong enough for such serious actions.
"While this Court believes there was some poor judgment in how Mr. Jain acted, it is not serious enough to warrant extra punishment or costs."
On February 12, 2026, Justice Harish Vaidyanathan Shankar appointed Justice Mukul Mudgal, a former Chief Justice of Punjab and Haryana High Court, as the new arbitrator. The court instructed both parties to split the costs equally.
"For this reason, this Court asks Hon’ble Mr. Justice Mukul Mudgal to look into the case and decide on the disagreements between the parties."
The Delhi High Court's decision makes sure that the arbitration process continues with a new arbitrator, focusing on fairness and proper steps. The court also clarified that no serious proceedings were necessary, concentrating instead on resolving the disagreement efficiently.
