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Bombay High Court

SURYA ALLOY INDUSTRIES LTDversusWESTERN RAILWAYS

Decided
Disposal
DISPOSED OFF

Holding

The Court appoints Mr. Ajai E. Fernandes as the sole arbitrator to adjudicate the disputes under Section 11 of the Arbitration and Conciliation Act, 1996.

Summary

Surya Alloy Industries Ltd filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking the appointment of an arbitrator to resolve disputes arising from a purchase order dated 29 November 2024. The parties had an arbitration clause in their contract (Clauses 2093 and 2095(b)(ii)) and the applicant had issued a notice of arbitration on 11 July 2025. The Court examined the existence and validity of the arbitration agreement and confirmed its jurisdiction to appoint a sole arbitrator under Section 11. Accordingly, the Court appointed Mr. Ajai E. Fernandes as the sole arbitrator and issued procedural directions for disclosure, communication, and cost sharing. All substantive issues, including limitation, were left open for determination by the appointed arbitrator.

Issues considered

  • What is the Court's jurisdiction to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996?
  • Is the arbitration clause in the contract valid and enforceable?
  • Do the procedural requirements of Section 11(8) and Section 12(1) need to be complied with before the arbitration proceeds?

Legislation cited

Subjects

  • arbitration
  • appointment of arbitrator
  • Section 11
  • commercial contract
  • purchase order
  • arbitration agreement
  • cost allocation

Judgment

                                                                                   13-CARAP-432-25-F.doc



                                                                                            Sayali



                                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
           Digitally signed
                                           ORDINARY ORIGINAL CIVIL JURISDICTION
        by SAYALI
SAYALI  DEEPAK
DEEPAK UPASANI                                  IN ITS COMMERCIAL DIVISION
UPASANI Date:
        2026.09.23
           16:53:33 +0530




                                      COMM. ARBITRATION APPLICATION NO. 432 OF 2025

                              Surya Alloy Industries Ltd                     … Applicant
                                         V/s.
                              Western Railways and Others                    … Respondents

                              Ms. Divya Tyagi with Mr. Bhupen Garud, for
                              Applicant.

                                                           CORAM      : AMIT BORKAR, J.

                                                           DATED      : SEPTEMBER 23, 2026

                              P.C.:
                              1.      The present Application has been filed under Section 11 of
                              the Arbitration and Conciliation Act, 1996, hereinafter referred to
                              as “the Act”, seeking the appointment of an Arbitrator for
                              adjudication of the disputes and differences stated to have arisen
                              between the parties in connection with the Purchase Order dated
                              29 November 2024. The arbitration agreement between the
                              parties is contained in Clause 2093 and 2095 (b)(ii)thereof,
                              which is placed on record at page 69 of the Application. In the
                              interest of brevity, the said arbitration clause is not reproduced
                              herein. It would suffice to observe that the present Application is
                              within the territorial jurisdiction of this Court.


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                                                     13-CARAP-432-25-F.doc


2.    It appears from the record that the Applicant invoked the
arbitration agreement by issuing a notice dated 11 July 2025.

3.    By consent of the parties, the disputes and differences
arising out of and in connection with the Agreement dated 29
November 2024 are required to be referred for adjudication to
arbitration by a Sole Arbitrator.

4.    In view of the aforesaid, the present Application filed under
Section 11 of the Act, as well as the Application filed under
Section 9 thereof, are disposed of by passing the following order:

         A) Mr. Ajai E. Fernandes, an advocate of this 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:-    Chamber    No.   2,    3rd    floor,
         Kamanwala Chambers, 14, Sir P.M. Road, Opp.
         Bombay Stores, Fort, Mumbai-400 001.

         Mobile No.-9892868713

         Phone No.-022- 22658586

         B) A copy of this Order will be communicated to the
         Learned Sole Arbitrator by the Advocates for the
         Applicant within a period of one week from today.
         The Applicant shall provide the contact and
         communication particulars of the parties to the
         Arbitral Tribunal along with a copy of this Order;



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                                           13-CARAP-432-25-F.doc


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 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 Applicant and a copy of the same
shall be furnished by the Advocates for the
Applicant to the Advocates for the Respondent;

D) 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;

E)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
shall constitute valid service of correspondence in
connection with the arbitration;



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        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.

5.     All issues on merits including limitation are expressly kept
open to be agitated before the arbitral tribunal appointed hereby.

6.   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.

                                           (AMIT BORKAR, J.)




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