Bombay High Court

Gharpure Engineering Vasai Virar STP Private LimitedversusVasai Virar City Municipal Corporation

Decided: 12 June 2026
Disposal: Disposed Off
Bench: JITENDRA SHANTILAL JAIN

Holding

The High Court appointed M. G. Gaikwad, Retired Justice, as the sole arbitrator to adjudicate the dispute, with the appointment effective after six weeks if payment is not made.

Summary

The petitioner, Gharpure Engineering Vasai Virar STP Private Limited, sought the appointment of a second arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, after the respondent, Vasai Virar City Municipal Corporation, failed to make a balance payment promised on 22 April 2026. The respondent indicated it would make the payment within six weeks, prompting the court to consider whether arbitration was still necessary. The court found that the arbitration agreement in Clause 20.8 of the 2013 contract was valid and undisputed, and the payment dispute remained unresolved. Consequently, the court appointed retired Justice M. G. Gaikwad as the sole arbitrator, with the appointment to become effective after six weeks if the payment is not made. The order also directed procedural steps for the arbitrator and the parties, and disposed of the petition without expressing any view on the merits.

Issues considered

The existence and validity of the arbitration agreement under Clause 20.8 of the 2013 contract.
Whether a second arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996 given the pending payment.
The effect of the respondent's promise to pay within six weeks on the necessity of arbitration.

Legislation cited

Arbitration and Conciliation Act, 1996 — s. 11, 11(8), 12(1)

Subjects

Arbitration
Section 11
Arbitration Agreement
Payment Dispute
Commercial Arbitration
High Court
Civil Appellate Jurisdiction

Judgment

HMK 906. COARP-08-2026.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
IN ITS COMMERCIAL DIVISION

COMMERCIAL ARBITRATION PETITION NO. 08 OF 2026

Gharpure Engineering Vasai Virar STP Private Limited ….Petitioner
Digitally
SAYYED
SAEED
signed by
SAYYED
SAEED ALI
Versus
ALI AHMED ALI
Date:
AHMED 2026.06.15
ALI 10:41:51
+0530 Vasai Virar City Municipal Corporation .…Respondent
__________________________________________________________________

Mr. Anish Shahapurkar a/w. Mr. Smeet Savla i/by SHS Chambers for the
Petitioner.
Mr. Bhavesh Paithane i/by Mr. Ashwin Kapadnis for the Respondent.
__________________________________________________________________

CORAM : JITENDRA JAIN, J.
DATED : 12th JUNE 2026

P. C. :
1. On 22nd April, 2026, the respondent stated that the balance payment
would be made within two weeks. However, till today the balance payment
has not been made. Therefore, the petitioner insisted that second Arbitrator
to be appointed under Section 11 of the Arbitration and Conciliation Act,
1996 (“the Act”).
2. The learned counsel for the Corporation states that they will make
the payment within six weeks from today.

3. After hearing both the learned counsels, there is no dispute that in
the agreement dated 26th March, 2013, Clause 20.8 provides for Dispute
Resolution Mechanism under the Arbitration Act. It is also undisputed that
the payments have not been made under the contract and, therefore, a
claim is made by the petitioner.

4. Therefore, since the existence of the arbitration agreement and the
dispute is not disputed, the Court appoints Mr. M. G. Gaikwad, J. (Retired)
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HMK 906. COARP-08-2026.doc

as an Arbitrator for resolving the dispute between the parties.

5. If the respondent makes payment and the petitioner accepts the same
towards full and final settlement, then there would be no need for
arbitration. Therefore, in the interest of justice and accepting the statement
made by the respondent, the appointment of the Arbitrator will be effective
on expiry of six weeks from today.

6. The parties are at liberty to raise all the contentions before the
learned Arbitrator.

7. In these circumstances, the Petition is finally disposed of in terms of
the following order :-

A) M. G. Gaikwad, J. (Retired) 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 : 104, Birya House, 1st Floor,
265, Perin Nariman Street, Fort,
Mumbai-400001.

Email ID : [email protected]

Contact No. : 9164461686

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
upload of this order. The petitioner 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;

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HMK 906. COARP-08-2026.doc

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 Default Paragraph StyleArbitral 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 in the first instance, and
shall be subject to any final Award that may be passed
by the Tribunal in relation to costs.
[

8. 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.

9. 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.

10. The fees of the Arbitrator will be mutually agreed upon by the
Arbitrator and both the parties.

11. Petition is disposed of in above terms.

[ JITENDRA JAIN, J. ]

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