Created by Fuzzy Cloud

Bombay High Court

MR. AMOL ANIL VARKHADEversusM/S ROYAL INFRA CORPORATION THR ITS PARTNERS.

Decided
Disposal
Disposed Off

Holding

The later Memorandum of Understanding's selection of Pune as the seat supersedes the earlier Aurangabad venue, and the arbitration clause is binding, warranting the appointment of a sole arbitrator.

Summary

The petitioner filed an arbitration petition under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator for disputes arising out of three related agreements. The first agreement (Work Order) named Aurangabad as the arbitration venue, while a later Memorandum of Understanding named Pune, and the Escrow Agreement left the venue blank. The respondents objected that the original Aurangabad venue should control and that the arbitration clause was not binding because the parties could later choose mediation or arbitration. The court rejected both objections, holding that the later Memorandum of Understanding represents a firm revised choice of Pune as the seat and that the arbitration clause is a binding agreement to resolve disputes by arbitration or mediation. Consequently, the court appointed Justice (Retd.) Sadashiv S. Deshmukh as the sole arbitrator and issued procedural directions for the arbitration.

Issues considered

  • The appropriate seat of arbitration when parties have multiple agreements with differing venue clauses
  • Whether an arbitration clause that allows parties to later choose mediation or arbitration is a binding arbitration agreement

Legislation cited

Subjects

  • arbitration
  • seat of arbitration
  • arbitration clause
  • appointment of arbitrator
  • Section 11
  • mediation
  • jurisdiction
  • High Court

Judgment

                                                                      73-arp-2-26 Final.doc



             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                        CIVIL APPELLATE JURISDICTION

                     ARBITRATION PETITION NO. 2 OF 2026

 Amol Anil Varkhade                                                 …Petitioner
            Versus
 M/s. Royal Infra Corporation & Anr.                                …Respondents



     Mr. Viraj Hake for the Petitioner.

     Mr. Govind B. Solanke a/w Mr. Ajay Badode for the Respondents.


                         CORAM           : SOMASEKHAR SUNDARESAN, J.
                         DATE            : FEBRUARY 17, 2026

ORDER :

1.            This Petition has been filed under Section 11 of the

Arbitration and Conciliation Act, 1996 ( “the Act”), seeking appointment

of an arbitrator in connection with disputes and differences between the

parties.


2.            There are three agreements involved. The first is a Work

Order dated September 11, 2023, which contains an arbitration clause

with Aurangabad as the venue. On September 27, 2023, the parties

reduced       to     writing   their     relationship      in   a   Memorandum          of

Understanding, and also executed an Escrow Account Agreement. There

                                          Page 1 of 5
                                       February 17, 2026
MPBalekar
                                                          73-arp-2-26 Final.doc



is an arbitration clause in each of the subsequent instruments. In the

Escrow Agreement, the place of arbitration is left blank while in the

Memorandum of Understanding, the place of arbitration is depicted as

Pune. In the interest of brevity, the arbitration agreements are not being

extracted here.    Suffice it to say that this matter falls within the

jurisdiction of this Court.


3.          The Learned Advocate for the Respondents raises two-fold

objections. First that the original Work Order referred to Aurangabad,

and therefore, the dispute should go to Aurangabad. This objection is

not found acceptable inasmuch as the Memorandum of Understanding,

which is a subsequent document between the same parties on the same

subject matter, has positively elected for Pune as the venue of

arbitration. This may be treated as a firm revised choice by the parties.


4.          The second objection on behalf of the Respondents is that the

text of the arbitration clause would indicate that the parties may, by

mutual agreement, opt for mediation or arbitration, and therefore, there

is one more stage of accepting or rejecting the arbitration agreement,

rendering the clause as not being a binding arbitration agreement. This,

to my mind, is not an acceptable submission. The parties evidently



                                 Page 2 of 5
                              February 17, 2026
MPBalekar
                                                          73-arp-2-26 Final.doc



decided to go in for an alternate dispute resolution mechanism, the

option for subsequent choice is between mediation and arbitration.


5.          Therefore, the agreement between the parties to agree later is

whether they would mediate or directly proceed to arbitration. The

invocation notice has been issued on November 4, 2025 and has not

been responded to till date. In these circumstances, with Pune as a seat

of arbitration, an Arbitral Tribunal is hereby appointed in the following

terms :-


                A) Justice (Retd.) Mr. Sadashiv S. Deshmukh, a former

                   judge of the District Court, is hereby 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;


                    Office Address:- 403, Jupiter, Gawand Baugh,
                                     Building No. 9, Pokharan Road
                                     No. 2, Upvan, Thane (West) -
                                     400610.
                    Email ID:        [email protected]



                B) A copy of this Order will be communicated to the

                   Learned Sole Arbitrator by the Advocates for the

                                 Page 3 of 5
                              February 17, 2026
MPBalekar
                                                            73-arp-2-26 Final.doc



              Petitioner/Applicant within a period of one week from

              the   date      of    upload      of   this   order.         The

              Petitioner/Applicant shall provide the contact and

              communication particulars of the parties to the

              Arbitral Tribunal along with a copy of this Order;


            C) The 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 parties

              within a period of two weeks from receipt of a copy of

              this Order;


            D) The parties shall appear before the Learned Sole

              Arbitrator on such date and at such place as indicated,

              to obtain appropriate directions 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 of the

              respective Advocates of the parties to the Arbitral

              Tribunal. Communications to such email addresses

                               Page 4 of 5
                            February 17, 2026
MPBalekar
                                                            73-arp-2-26 Final.doc



                   shall constitute valid service of correspondence in

                   connection with the arbitration;


                E) 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.          Needless to say, nothing contained in this order is an

expression of an opinion on merits of the matter or the relative strength

of the parties. All issues on merits are expressly kept open to be agitated

before the arbitral tribunal appointed hereby.


7.          Reply affidavit has also been filed by the Respondents

depicting the aforesaid objections. The same is taken on record.


8.          All actions required to be taken pursuant to this order shall

be taken upon receipt of a downloaded copy as available on this Court’s

website.


                          [ SOMASEKHAR SUNDARESAN, J.]




                                  Page 5 of 5
                               February 17, 2026
MPBalekar


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.