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Bombay High Court

HINDUSTAN CONSTRUCTION COMPANY LIMITEDversusENGINEERING SERVICES

Decided
Disposal
DISPOSED OFF

Holding

The arbitration petition is disposed of in terms of the settlement agreement, as the parties have mutually agreed to withdraw the proceedings.

Summary

The petitioner, Hindustan Construction Company Ltd., filed an arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an award dated 16 September 2015 that required it to pay amounts to the respondent, Engineering Services. Both parties later executed a Settlement Agreement on 11 September 2026, wherein they agreed to jointly approach the Bombay High Court to record the settlement and withdraw or dispose of the pending arbitration and execution proceedings. The petitioner’s counsel highlighted Clause 4 of the settlement, which expressly provides for the withdrawal and disposal of the arbitration petition and related execution petition, without any admission of merit. The Court examined the settlement, found it duly executed by authorized representatives, and noted that the parties were ad idem that no issue remained for adjudication. Consequently, the Court ordered that the arbitration petition be disposed of in accordance with the settlement, marking the agreement on record and dismissing any interim applications without costs.

Issues considered

  • Whether a pending arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, can be withdrawn and disposed of on the basis of a mutually executed settlement agreement.

Legislation cited

Subjects

  • Arbitration
  • Settlement Agreement
  • Section 34
  • Withdrawal of proceedings
  • Execution of award
  • High Court of Bombay

Judgment

                                                                                             40-ARBP-290-15.DOC


 JYOTI
 RAJESH                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
 MANE                                ORDINARY ORIGINAL CIVIL JURISDICTION
Digitally signed by
JYOTI RAJESH
MANE
Date: 2026.10.09
10:49:16 +0530                          ARBITRATION PETITION NO. 296 OF 2016
                                                      WITH
                                         NOTICE OF MOTION NO. 2056 OF 2016


                      Hindustan Construction Company Limited                ...Petitioner
                             Versus
                      Engineering Services                                  ...Respondent
                                                            _______
                      Mr. Jatin Pore a/w. Mr. Karan Jain a/w. Ms. Meera Shah i/b. DSK Legal,
                      for the Petitioner.
                      Mr. Pankaj Sutar a/w. Ms. Chaitali Kamble, i/b. Jayakor & Partners,
                      for Respondent.
                                                           _______

                                                  CORAM:         AARTI SATHE, J.

                                                   DATE:         07 OCTOBER 2026

                      P.C.

                      1.     The present arbitration petition has been filed by the Petitioner challenging

                      the award dated 16th September 2015, whereby the Petitioner was directed to pay

                      certain amounts to the Respondent. Learned counsel appearing on behalf of the

                      parties have today placed before this Court a Settlement Agreement dated 11th

                      September 2026, whereby the disputes forming the subject matter of the present

                      arbitration petition have been amicably settled between the parties.

                      2.     Learned counsel appearing on behalf of the Petitioner has specifically drawn

                      the attention of this Court to Clause 4 of the Settlement Agreement, which

                      provides that the parties shall jointly request this Court to take the aforesaid

                      Agreement/Settlement on record and pass appropriate orders for disposal of the


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                                                                              40-ARBP-290-15.DOC



proceedings under Section 34 of the Arbitration and Conciliation Act, 1996, as

well as the execution proceedings, in terms of the settlement recorded therein.

Clause 4 of the aforesaid Settlement Agreement is reproduced below:

       4. WITHDRAWAL AND DISPOSAL OF PENDING PROCEEDINGS
       4.1 Upon execution of this Settlement Agreement, the Parties shall take all
       necessary and appropriate steps before the Hon'ble High Court of Judicature
       at Bombay for recording the settlement and for withdrawal and/or disposal
       of Arbitration Petition No. 296 of 2016 filed by HCC under Section 34 of
       the Act and Execution Petition No. COMEX/1712/2018 filed by
       Engineering Services for enforcement/execution of the Award, together with
       all connected applications and proceedings arising therefrom.
       4.2 The Parties shall jointly request the Hon'ble High Court of Judicature at
       Bombay to take this Agreement/settlement on record and pass appropriate
       orders for disposal of the aforesaid Section 34 Proceedings and Execution
       Proceedings in terms of the settlement recorded herein.
       4.3 Upon execution of this Agreement and subject to the terms contained
       herein, Engineering Services shall not take any further steps for enforcement
       or execution of the Award, and HCC shall not pursue the Section 34
       Proceedings, except as may be necessary for giving effect to or enforcing the
       terms of this Agreement.
       4.4 For the avoidance of doubt, the withdrawal and/or disposal of the
       aforesaid proceedings shall be pursuant to and in consideration of the
       settlement recorded herein and shall not be construed as an admission by
       either Party of the correctness, validity or merits of the contentions raised in
       the said proceedings.


3.      Considering that the parties are ad idem that in view of the aforesaid

Settlement Agreement, nothing survives for adjudication in the present Arbitration

Petition, this Court is of the view that the present Petition can be disposed of in

terms of the Settlement Agreement. A copy of the Settlement Agreement is taken

on record and marked ‘X’ for identification.

4.      The Settlement Agreement has been duly executed by the authorised

representatives of both parties and also bears the signatures of the relevant

witnesses. In view of the aforesaid Settlement Agreement, the present Arbitration

Petition stands disposed of in terms thereof.


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                                                                         40-ARBP-290-15.DOC




5.     Interim applications, if any, also stand disposed of. No costs.




                                            (AARTI SATHE, J.)




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