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Bombay High Court

WELLKNOWN POLYESTERS LTD (ACTING THROUGH ITS AUTHORIZED SIGNATORY MR MAHESH PAREEK)versusYOGESH VED PRAKASH SACHDEVA

Decided
Disposal
DISPOSED OFF

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

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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Sonali Mane                                              20-ARBAP-93-2026.docx



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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Sonali Mane                                                20-ARBAP-93-2026.docx



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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