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Create a controller file SfuploadController.php under MageSf/OrderCustom/controllers/Adminhtml

<?php
class MageSf_OrderCustom_Adminhtml_SfuploadController extends Mage_Adminhtml_Controller_Action {  
    public function uploadAction() {
        if (isset($_FILES['docname']['name']) && $_FILES['docname']['name'] != '') {
            try {
                $uploader = new Varien_File_Uploader('docname');
                $uploader->setAllowedExtensions(array('doc','pdf','txt','docx'));
                $uploader->setAllowCreateFolders(true);
                $uploader->setAllowRenameFiles(false);
                $uploader->setFilesDispersion(false);
                $newDir = "customer_documents";

                $newdirPath = Mage::getBaseDir('media') . DS . "customer_documents";

                if (!file_exists($newdirPath)) {
                    mkdir($newdirPath, 0777);
                }

                $path = Mage::getBaseDir('media') . DS . $newDir . DS;
                $resizedPath = Mage::getBaseDir('media') . DS . $newDir;
                $uploader->save($path, $_FILES['docname']['name']);
                $filename = $uploader->getUploadedFileName(); // Uploaded File name
                Mage::getSingleton('adminhtml/session')->addSuccess(Mage::helper('core')->__('File uploaded successfully.'));
            } catch (Exception $e) {
                Mage::getSingleton('adminhtml/session')->addError(Mage::helper('core')->__('Unable to find item to save'));
            }
        }
        
        $this->_redirectReferer();
    }
}

Update your config.xml and add below code

<admin> 
    <routers>
         <adminhtml> 
             <args> 
                 <modules> 
                <MageSf_OrderCustom after="Mage_Adminhtml">MageSf_OrderCustom_Adminhtml</MageSf_OrderCustom> 
                </modules> 
            </args>
       </adminhtml>
   </routers> 
</admin>

Update your ordercustom.phtml You need to remove all other code from this file.

<form id="doc-form" name="doc-form" method="post" action="<?php echo Mage::helper('adminhtml')->getUrl('adminhtml/sfupload/upload',array('form_key' => Mage::getSingleton('core/session')->getFormKey())); ?>" enctype="multipart/form-data">
 <label>Upload Document</label>
 <input type="file" title="File" name="docname">
 <button type="submit" title="Save"><span>Upload</span></button>                    
 </form>