Bombay High Court
ISGEC HEAVY ENGINEERING LTD, THRU. ITS AUTHORIZED SIGNATORY MR. KAPIL KUMAR SINGHversusBHAURAO CHAVAN SAHAKARI SAHAKAR KARKHANA LTD.
- Disposal
- DISPOSED OFF
Holding
The appointment of the arbitrator was confirmed as the parties, after full disclosure, consented to his role despite his shareholding in the respondent.
Summary
The High Court of Bombay, Aurangabad bench, considered an application to confirm the appointment of Mr. Virbhadra Aneji Nandedkar as sole arbitrator in a dispute between ISGEC Heavy Engineering Ltd and Bhaurao Chavan Sahakari Sahakar Karkhana Ltd arising from an agreement dated 01.07.2024. The arbitrator disclosed that he is a shareholder of the respondent sugar factory. Both parties, after receiving the arbitrator's statement of disclosure, instructed their advocates that they had no objection to his appointment. The court examined whether the disclosed shareholding created a disqualifying conflict of interest. Finding that the parties, fully informed, consented to the appointment, the court confirmed the provisional appointment. Consequently, the arbitration application was disposed of, confirming the arbitrator’s appointment.
Issues considered
- Whether the arbitrator's shareholding in the respondent constitutes a conflict of interest warranting his disqualification under the Arbitration and Conciliation Act, 1996.
Subjects
- Arbitration
- Arbitrator appointment
- Conflict of interest
- Disclosure
- Consent
- Arbitration and Conciliation Act
Judgment
2026:BHC-AUG:38761
1 927-arba-11-2026.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY,
BENCH AT AURANGABAD
ARBITRATION APPLICATION NO. 11 OF 2026
ISGEC Heavy Engineering Ltd, Thru. Its Authorized Signatory Mr. Kapil
Kumar Singh
VERSUS
Bhaurao Chavan Sahakari Sahakar Karkhana Ltd.
...
Advocate for Applicant : Mr. Pandurang Bondar h/f Mr. Randive Sachin
Shivaji
Advocate for Respondent : Mr. Rathi Swapnil S.
...
CORAM : ROHIT W. JOSHI, J.
DATED : AUGUST 27, 2026
P.C.:
1. Vide order dated 10.08.2026, learned advocate Mr. Virbhadra
Aneji Nandedkar was appointed as sole Arbitrator for resolution of
dispute between the parties arising out of agreement dated 01.07.2024.
Learned Arbitrator was requested to furnish letter of consent and
statement of disclosure. Learned Arbitrator vide letter dated
19.08.2026 communicated his consent to act as an Arbitrator, however,
he has fairly stated that he is a shareholder of respondent/sugar factory.
2. Learned advocates representing respective parties have
obtained instructions from their respective clients in view of statement
of disclosure received from learned Arbitrator. Learned advocates, on
instructions, from their respective clients submit that they have no
objection for confirmation of appointment of learned advocate Mr.
Virbhadra Aneji Nandedkar as sole Arbitrator for resolution of dispute
2 927-arba-11-2026.odt
between them arising out of agreement dated 01.07.2024.
3. In view of aforesaid, provisional appointment of learned
advocate Mr. Virbhadra Aneji Nandedkar as sole Arbitrator made vide
order dated 10.08.2026 is confirmed.
4. Arbitration Application is disposed of accordingly.
[ROHIT W. JOSHI J.]
Mujaheed//
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