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Bombay High Court

M/S. TRIGYN TECHNOLOGIES LTD THR SRIKIRAN YALAMANCHALIversusCHIEF EXECUTIVE OFFICER NASHIK MUNICIPAL SMART CITY DEVELOPMENT CORPORATION LTD.

Decided
Disposal
Disposed Off

Holding

The court terminated the appointment of the sole arbitrator and ordered the parties to appoint a three‑member arbitral tribunal as stipulated in the contract.

Summary

M/s. Trigyn Technologies Ltd. filed a commercial arbitration petition against the Chief Executive Officer of Nashik Municipal Smart City Development Corporation, alleging misconduct by the previously appointed sole arbitrator, a retired judge. The petitioner later filed an affidavit withdrawing all allegations and expressing no objection to the arbitrator's recusal. The court, noting the withdrawal, declined to examine the misconduct claims and terminated the sole arbitrator's mandate. It then directed the parties to appoint a three‑member arbitral tribunal in accordance with Clause 5.34.4 of their agreement, with each party naming one arbitrator and those two arbitrators jointly selecting the third. The venue for the arbitration was fixed at Mumbai and the petition was subsequently disposed.

Issues considered

  • Whether the court must entertain allegations of misconduct against an arbitrator after the petitioner withdraws them
  • Effect of withdrawal of allegations on the continuation of the arbitrator's appointment
  • Whether the parties may replace a sole arbitrator with a three‑member tribunal as per the contractual arbitration clause
  • Procedural steps for appointing the third arbitrator under the clause

Legislation cited

Subjects

  • Arbitration
  • Recusal of arbitrator
  • Appointment of arbitrators
  • Arbitration clause
  • Termination of mandate
  • Arbitration and Conciliation Act 1996
  • Commercial arbitration

Judgment

                      LSP                                    1              4 coarp 3.26.doc


                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   CIVIL APPELLATE JURISDICTION

                                    Commercial Arbitration Petition No.3 of 2026

                      M/s. Trigyn Technologies Ltd.
                      Through Srikiran Yalamanc Hali                      …        Petitioner
                            v/s.
                      Chief Executive Officer Nashik Municipal
                      Smart City Development Corporation
                      Ltd.                                                …        Respondents


                      Ms. Drishti Shah i/b. Ms. Rekha Advocate for the Appellant
                      Rajgopal
                      Mr.Abhishek T. Ingle i/b.Mr.    Advocate for respondent No.1.
                      M.L. Patil
                      Mr. Vedant Bende i/b. Mr.       Advocate for respondent No.2.
                      Mandar Limaye

                                                   CORAM : S.M. MODAK, J

                                                      DATE : 24th August 2026.

                      P.C. :

                      1.       It is true after hearing all the sides this Court on 21 st August
                      2026 has kept this matter today for the purpose of filing an affidavit
          Digitally
          signed by
LATA
SUNIL
         LATA SUNIL
         PANJWANI
         Date:
PANJWANI 2026.08.28
                      by the Petitioner thereby withdrawing allegations against the
          12:56:47
          +0530



                      erstwhile Arbitrator/Retired Judge of this Court.

                      2.       The Petitioner has filed an affidavit affirmed by their Head of
                      India business Mr. Srikiran Yalamanchali. He has stated that he is
                      withdrawing the allegations and giving no objection in recusal of the
LSP                                     2                 4 coarp 3.26.doc


earlier Arbitrator. The allegations raised by the Petitioner about the
manner of conducting arbitration by the earlier Arbitrator have been
strongly denied by the learned Arbitrator.             But in view of the
withdrawal of the allegations, this Court need not to go into those
allegations. In view of that the mandate needs to be terminated and
new Arbitrators are to be appointed.

3.    There is an arbitration clause which suggests of arbitration by 3
Arbitrators. The relevant portion of Clause No.5.34.4 is reproduced
below:
         “If any disputes or differences between the Parties are not
         resolved under clause 5.34.2 above, the same shall be
         referred   for   arbitration   under    the   Arbitration           and
         Conciliation Act, 1996 for the time being in force.

         The arbitral tribunal shall consist of 3 (three) arbitrators- one
         each nominated by each Party and the third one being
         nominated by these two arbitrators. The Contractor and
         NMSCDCL will continue to perform their respective
         obligations under the Agreement during the arbitration
         proceedings.”


4.    Earlier by consent sole Arbitrator was appointed by this Court
but now the parties are willing to have 3 Arbitrators as per the said
clauses. The Petitioner is suggesting name of Shri Rajesh G. Ketkar,
J (Retired Judge of this Court) and Respondent is suggesting name of
Shri R.M.Sawant, J (Retired Judge of this Court). In view of that as
LSP                                   3              4 coarp 3.26.doc


per the clause let both the learned Arbitrators to nominate 3 rd
Arbitrator. In view of that following order is passed:

                                 ORDER
      (i) The mandate appointing Mr. A.M.Dhavale , J is terminated.
        Both the parties to resolve the issue of payment of his fees.

      (ii) Let Shri Rajesh G. Ketkar, J and Shri R.M. Sawant, J to
        appoint the 3rd Arbitrator.

5.     It is made clear that venue of arbitration will be at Mumbai.

6.     Both the parties are directed to approach learned Arbitrators by
having correspondence with them and then to decide future course
of action.

7.     Arbitration Petition is disposed of.



                                               (S.M. MODAK, J.)


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