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Bombay High Court

Sai Estate Consultants Chembur Pvt LtdversusSanjiv Manmohan Gupta

Decided
Disposal
DISPOSED OFF

Holding

The Court set aside the impugned order, appointed Mr. Swanand Ganoo as sole arbitrator, and disposed of the interim application.

Summary

The High Court heard an interim application in a commercial arbitration petition where both parties agreed that there was no grievance against the previous arbitrator and only legal pleas were raised. The Court set aside the impugned order and, finding no opposition, appointed Mr. Swanand Ganoo, Advocate, as the sole arbitrator to decide the disputes. Detailed terms of appointment were stipulated, including communication, disclosure under the Arbitration Act, and the parties' right to raise jurisdictional questions under Section 16. The Court also allowed the parties to make interim applications under Section 17 and directed the arbitrator to dispose of them promptly. Costs and fees were to be shared equally, and the venue and seat of arbitration were fixed at Mumbai. The arbitration proceedings were ordered to recommence from the stage they stood before the previous arbitrator, and the interim application was disposed of.

Issues considered

  • Whether the order appointing a new arbitrator can be set aside in the absence of any grievance against the previous arbitrator.
  • Whether the parties may raise jurisdictional challenges under Section 16 of the Arbitration and Conciliation Act, 1996.
  • Whether the interim application filed by the parties survives after the appointment of a sole arbitrator.

Legislation cited

Subjects

  • arbitration
  • sole arbitrator appointment
  • Section 16 jurisdiction
  • Section 17 interim application
  • commercial arbitration
  • cost sharing
  • venue and seat
  • disposal of interim application

Judgment

                                                                               903.4911.26-IA.DOC



                                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   ORDINARY ORIGINAL CIVIL JURISDICTION


                                   INTERIM APPLICATION NO. 4911 OF 2026
                                                         IN
                           COMMERCIAL ARBITRATION PETITION NO. 974 OF 2026


                      Sai Estate Consultants Chembur Pvt. Ltd.               … Applicant
         Digitally
         signed by
         BASAVRAJ
BASAVRAJ GURAPPA
GURAPPA PATIL
PATIL    Date:        In the matter between:
         2026.10.05
         19:12:39
         +0530

                      Sai Estate Consultants Chembur Pvt. Ltd.               … Petitioner
                      Versus
                      Sanjiv Manmohan Gupta                                  ...Respondent
                                                    __
                      Mr. Dinyar Madon, Senior Advocate with Mr. Suraj Iyer, Mr.
                      Mihir Nerurkar, Ms. Gauri Joshi and Mr. Yohan Mehta i/b.
                      Ganesh & Co. for the Petitioner

                      Mr. Naushad Engineer, Senior Advocate with Mr. Sudarshan
                      Satalkar, Mr. Hemanshu Vyas, Mr. Dhiraj Shetye & Ms. Hetal
                      Patel i/b. Hetal Patel for the Respondent


                                              CORAM       :       ARIF S. DOCTOR, J.
                                              DATE        :       1st OCTOBER 2026
                      P.C.


                      1.     After the matter was heard at some length, learned Counsel for

                      the parties were agreeable that the impugned order could be set

                      aside. It is expressly clarified that neither party has any allegation or

                      grievance to make against the previous Arbitrator. Mr. Madon submits



                      Basavraj                                                              Page|
                                                             903.4911.26-IA.DOC



that even in the Petition, no allegation or grievance has been raised

against the previous Arbitrator, and only legal pleas have been raised.


2.     In view of the fact that there is no opposition to the

appointment of the Sole Arbitrator, I appoint Mr. Swanand Ganoo,

Advocate, to act as the Sole Arbitrator to decide the disputes and

differences    between    the   parties   on   the   following   Terms    and

Conditions.


                          TERMS OF APPOINTMENT

       (a)    Appointment       of   Arbitrator:-    Mr.   Swanand    Ganoo,
       Advocate is hereby nominated to act as a Sole Arbitrator to
       decide the disputes and differences between the parties.

       (b)    Communication to Arbitrator of this order:-

              (i)    A copy of this order will be communicated to the
              learned Sole Arbitrator by the Advocates for the Petitioner
              within one week from the date this order is uploaded.

              (ii)   The Advocates for the Petitioner will forward an
              ordinary copy of this order to the learned Sole Arbitrator
              at the following postal and email addresses.

              Mr. Swanand Ganoo, Advocate

              19, 1st Floor, Rohit Chambers,

              Janmabhoomi Marg,

              Fort, Mumbai – 400001,

              (Mob. No. 9869765529; Email: [email protected])




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                                                           903.4911.26-IA.DOC



       (c)   Disclosure:- The learned Sole Arbitrator is requested to
       forward, in hard copy or soft copy (or both), the necessary
       statement of disclosure under Section 11(8) read with Section
       12(1) of the Arbitration Act to Advocates for the parties as soon
       as possible. The Advocates for the Petitioner will arrange to file
       the original statement in the Registry. If the statement is
       forwarded in soft copy, a print out of the covering email is also
       to be filed in the registry.

       (d)   Appearance before the Arbitrator:- Parties will appear
       before the learned Sole Arbitrator on such date and at such
       place as the learned Sole Arbitrator nominates to obtain
       appropriate directions in regard to fixing a schedule for
       completing pleadings, etc.

       (e)   Contact/communication information of the parties:-
       Contact and communication particulars are to be provided by
       both sides to the learned Sole Arbitrator. The information is to
       include functional email addresses and mobile numbers.

       (f)   Section 16 application:- The respondent is at liberty to
       raise all questions of jurisdiction within the meaning of section
       16 of the Arbitration Act. All contentions are left open.

       (g)   Interim Applications:-

             (i)    Liberty to the parties to make an interim application
             or interim applications including (but not limited to)
             interim applications under Section 17 of the Arbitration &
             Conciliation Act. 1996 before the learned Sole Arbitrator.
             Any such application will be decided in such manner and
             within such time as the learned Sole Arbitrator deems fit.



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                                                            903.4911.26-IA.DOC



             (ii)   The learned Sole Arbitrator is requested to dispose
             of all interim applications at the earliest.

       (h)   Sharing of costs and fees:- Parties agree that all
       arbitral costs and the fees of the arbitrator will be borne by the
       two sides in equal shares in the first instance.

       (i)   Consent to an extension if thought necessary:-
       Parties immediately consent to a further extension of up to six
       months to complete the arbitration should the learned Sole
       Arbitrator find it necessary.

       (j)   Venue and seat of arbitration:- Parties agree that the
       venue and seat of the arbitration will be in Mumbai.

3.     The arbitration proceedings shall recommence from the stage at

which they stood before the previous Arbitrator.


4.     The learned Arbitrator is requested to endeavour to dispose of

the said Application within a period of two months from the date on

which he takes charge of the proceedings.

5.     The Court Registry shall hand back to the Petitioner the invoices

which were taken on record and kept in a sealed envelope pursuant to

the order dated 16th September, 2026.


6.     Needless to state, all rights and contentions of the parties are

expressly kept open.




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                                                      903.4911.26-IA.DOC



7.     The Arbitration Petition is disposed of in the above terms. In

view thereof, the Interim Application does not survive and is also

disposed of.




                                           [ARIF S. DOCTOR, J.]




Basavraj                                                           Page|


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