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Bombay High Court

UNION OF INDIA THROUGH CHIEF ENGINEER AF VIJAYKUMAR CMversusPATIL CONSTRUCTION PVT LTD

Decided
Disposal
Disposed Off

Holding

The court appointed Justice D.S. Thakur, a former Chief Justice, as the sole arbitrator, deeming a legal background appropriate for the dispute.

Summary

The Union of India filed a commercial arbitration petition against M/s. Patil Construction Pvt. Ltd., invoking an arbitration clause in the tender that required an arbitrator with an engineering background. The petitioner sought appointment of a retired High Court judge with legal expertise, given the dispute involved over Rs. 18 crore. The court considered the nature of the dispute and agreed that a legally trained arbitrator would be appropriate. It appointed Justice D.S. Thakur, a former Chief Justice of the Andhra Pradesh High Court, as the sole arbitrator, with directions for communication and disclosure under the Arbitration Act. The court ordered equal sharing of arbitral costs and disposed of the petition.

Issues considered

  • Whether an arbitrator with an engineering background is mandatory under the arbitration clause
  • Whether a retired judge with legal expertise can be appointed as arbitrator in a commercial dispute exceeding Rs. 18 crore

Legislation cited

Subjects

  • Arbitration
  • Arbitrator appointment
  • Engineering background
  • Legal background
  • Commercial arbitration
  • Arbitration clause
  • Section 11(8)
  • Section 12(1)
  • High Court

Judgment

                      LSP                                    1                909 coarp 31.26.doc


                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   CIVIL APPELLATE JURISDICTION

                                   Commercial Arbitration Petition No. 31 of 2026

                      Union of India                                        …       Petitioner
                            v/s.
                      M/s. Patil Construction Pvt. Ltd.                     …       Respondent


                      Ms. Dhruti Kapadia                      Advocate for the petitioner.
                      Mr. M.N. Sandhyanshiv                   Advocate for the Respondent.


                                                    CORAM : S.M. MODAK, J

                                                       DATE : 28th August 2026.

                      P.C. :
                      1.       Heard learned Advocate for the Petitioner and learned
                      Advocate for the Respondents.

                      2.       It is true there is an arbitration clause in Tender which is clause
                      No.7-B at Page No.78. It says about appointment of an Arbitrator
                      who is having engineering background. Notice is already given

LATA
         Digitally
         signed by
         LATA
         SUNIL
                      invoking arbitration clauses. Even though in the arbitration petition
SUNIL    PANJWANI
PANJWANI Date:
         2026.08.29
         13:37:28
         +0530        request is to appoint Arbitrator having engineering background, the
                      submission is made          that Retired High Court Judge may be
                      appointed who is having legal acumen considering the fact that
                      amount involved in the dispute is more than 18 Crores. It is true by
                      way of affidavit-in-reply, learned Advocate has suggested 3 names
LSP                                      2            909 coarp 31.26.doc


having engineering background.

3.        No doubt considering the nature of the dispute if an Arbitrator
is having engineering background, it will be an added advantage.
However, considering the nature of the dispute this Court feels that
an Arbitrator having a legal background will be in the fitness of the
things. Learned Advocate for the Petitioner has suggested the name
of Justice D.S. Thakur, a retired Chief Justice of High Court of
Andhra Pradesh. It is consented by learned Advocate for the
Respondents. In view of that following order is passed:

                                  ORDER

     A)     Justice D.S. Thakur, Former Chief Justice of Andhra
            Pradesh High Court is hereby appointed as the Sole
            Arbitrator to adjudicate upon the disputes and differences
            between the parties arising out and in connection with the
            the matter referred above;
           Office address :- Apartment No.202, Surabhi CHS,
                             Oshiwara, Mumbai.
          Email id :      - [email protected]
          Contact No.    - 9419187734

     B)     A copy of this Order will be communicated to the
            Learned Sole Arbitrator by the Advocates for the
            Petitioner within a period of one week from the date of
            uploading of this order. The petitioner shall provide the
LSP                                    3              909 coarp 31.26.doc


            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 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 as per the Schedule.


4.        Commercial Arbitration Petition is disposed of.



                                              (S.M. MODAK, J.)


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