Bombay High Court
WELLKNOWN POLYESTERS LTD (ACTING THROUGH ITS AUTHORIZED SIGNATORY MR MAHESH PAREEK)versusYOGESH VED PRAKASH SACHDEVA
- Decided
- Disposal
- DISPOSED OFF
- Bench
- ARUN R PEDNEKER
Holding
The court held that the arbitration agreement is valid and appointed a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Summary
Wellknown Polyesters Ltd. entered into an employment contract with Yogesh Ved Prakash Sachdeva that contained an arbitration clause under Clause 11(c) of a Non‑Compete & Non‑Solicitation Agreement. The applicant served a notice invoking arbitration on 10 July 2025, but the respondent did not respond. The applicant filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator. The respondent contended that the non‑compete bond was illegal but did not dispute the existence of the arbitration agreement. The Bombay High Court held the arbitration agreement to be enforceable and, exercising its power under Section 11, appointed Mr. Nilesh Patil as sole arbitrator, issuing procedural directions and ordering the costs to be borne equally. The arbitration application was thereafter disposed.
Issues considered
- Whether the arbitration clause in the employment contract is valid and enforceable.
- Whether the court can appoint a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
- Whether the non‑compete bond affects the enforceability of the arbitration agreement.
Legislation cited
- Arbitration Act, 1940
- Arbitration and Conciliation Act, 1996 — s. 11, 11(8), 12(1)
Subjects
- Arbitration
- Employment contract
- Non‑compete clause
- Section 11
- Appointment of arbitrator
- Bombay High Court
Judgment
Sonali Mane 20-ARBAP-93-2026.docx
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION APPLICATION NO. 93 OF 2026
Wellknown Polyesters Ltd. (Acting Through
Its Authorized Signatory Mr Mahesh Pareek) … Applicant
Versus
Yogesh Ved Prakash Sachdeva … Respondent
Adv. Trisha Ranka a/w Adv. Prerak Choudhary for Applicant.
Adv. Govind Solanke for Respondent.
CORAM : ARUN R. PEDNEKER, J.
DATE : 27 JULY, 2026
P.C. :
1. Heard learned counsel appearing for the parties.
2. Learned counsel appearing for Applicant submits that the
Applicant had entered in employment contract with the Respondent. In
case of any disputes arises out of the service agreement, it was to be
resolve through process of arbitration. Clause 11 (c) of Non-Compete &
Non-Solicitation Agreement provides for resolution of dispute through
Digitally
signed by
MANE
MANE SONALI
arbitration and the same is noted below for ready reference:-
SONALI DILIP
DILIP Date:
2026.07.29
13:55:00
+0530
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11(c) That in the event of any dispute or difference arising
between the parties hereto either during the subsistence of this
bond and afterwards relating to this bond, the same shall be
referred to the Arbitration of CORPORATE-HR of the
Company whose decision shall be final and binding on the
parties. The provisions of the Indian Arbitration Act, 1940 or
any statutory modification or re-enactment thereof for the time-
being in force shall be applicable to Mumbai Courts alone will
have exclusive jurisdiction in all matters connected with this
Bond. "
3. Learned counsel for the Applicant submits that further Non
Compete and Non-Solicitation Agreement dated 20 November, 2018
was executed between the Applicant and the Respondent, which
provides for resolution of disputes arising therefrom to solve through
arbitration. She further submits that disputes have arisen between the
parties and that notice invoking arbitration clause was issued on 10
July, 2025. However, there is no response. Thus, the Applicant has filed
the present application under Section 11 of the Arbitration and
Conciliation Act, 1996 for appointment of the Arbitrator.
4. Learned counsel appearing for the Respondent submits that,
after initial appointment of the Respondent employee in the year 2017,
a bond was executed in the year 2018 and the Respondent was forced to
sign such a bond whereby he was restrained from joining a similar
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company for period of three years. He submits that the Respondent has
expertise only in this field and that such a bond is illegal and void.
However, there is no dispute of existence of an arbitration agreement or
on the invocation notice.
5. Having considered the material, this Court would pass the
following order:-
(A) Mr. Nilesh Patil, learned Advocate of this Court is appointed as
the sole Arbitrator to adjudicate upon the disputes and differences
between the parties arising out of and in connection with the
Agreement referred to above. The contact details of the Arbitrator are
as under :-
Address : 36, 4th Floor Western India
House Building, Above the
Bombay Store, P. M. Road, Fort,
Mumbai 400 001
Mobile No. : 9823717717
Email ID : [email protected]
(B) A copy of this order be communicated to the learned sole
Arbitrator by the Advocates for the Applicant within a period of 1 week
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from the date of uploading of this order. The Applicant shall provide
the contact and communication particulars of the parties to the
Arbitral Tribunal along with a copy of this order.
(C) Seat and venue of the arbitration would be governed by the
provisions of the agreement executed between the parties.
(D) Learned sole Arbitrator is requested to forward the statutory
Statement of Disclosure under Section 11(8) read with Section 12(1) of
the Act to the Advocates for the Applicant so as to enable them to file
the same in the Registry of this Court. The Registry of this Court shall
retain the said Statement on the file of this Application and a copy of
the same shall be furnished by the Advocates for the Applicant to the
Respondent.
(E) The parties shall appear before the learned sole Arbitrator on
such date and at such place as indicated by him, to obtain appropriate
direction with regard to conduct of the arbitration including fixing a
schedule for pleadings, examination of witnesses, if any, schedule of
hearings etc. At such meeting, the parties shall provide a valid and
functional email address along with mobile and landline numbers, if
any, of the respective Advocates of the parties to the Arbitral Tribunal.
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Communications to such email addresses shall constitute valid service
of correspondence in connection with the arbitration.
(F) All arbitral costs and fees of the Arbitral Tribunal shall be borne
by the parties equally in the first instance and shall be subject to any
final Award that may be passed by the Tribunal in relation to costs.
6. All contentions of the parties are expressly kept open to be
raised before the Arbitrator.
7. With the above directions, Arbitration Application stands
disposed of accordingly.
[ARUN R. PEDNEKER, J.]
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