Gujarat High Court
Sujal Advertisers Pvt. Ltd. Through Its ... vs The Municipal Commissioner , Vadodara ... on 26 September, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/ARBI.P/86/2025 ORDER DATED: 26/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/PETN. UNDER ARBITRATION ACT NO. 86 of 2025
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SUJAL ADVERTISERS PVT. LTD. THROUGH ITS DIRECTOR SHRI
PARESH RAJNIKANT SHAH
Versus
THE MUNICIPAL COMMISSIONER , VADODARA MUNICIPAL
CORPORATION & ANR.
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Appearance:
MR KEVAL H. PANDIT for MR AJAY S JAGIRDAR(2688) for the
Petitioner(s) No. 1
MR MAULIK NANAVATI for NANAVATI & CO.(7105) for the
Respondent(s) No. 1
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
Date : 26/09/2025
ORAL ORDER
1. There is no dispute about the arbitration clause and the notice issued invoking arbitration clause by the petitioner herein. In the affidavit filed on behalf of the Vadodara Municipal Corporation dated 25.09.2025, it is sought to be stated that the contract was cancelled in view of the judgment and order dated 05.08.2021 passed by the Division Bench of this Court in Special Civil Application No. 19657 of 2019 and fresh financial bids were invited, pursuant to the directions contained therein.
2. Placing the said decision, it is contended by Mr. Maulik G. Nanavati, learned advocate for the respondent Corporation Page 1 of 4 Uploaded by BIJOY B. PILLAI(HC00202) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 21:51:16 IST 2025 NEUTRAL CITATION C/ARBI.P/86/2025 ORDER DATED: 26/09/2025 undefined that the Unipoles erected by the petitioner are being retained by the Corporation and a new party is now permitted to display its advertisement on such Unipoles. The decision to cancel the contract has been taken by the Corporation pending the writ petition which has been decided by this Court vide judgment and order dated 05.08.2021. The decision explicitly conveyed the intention of the Corporation to invite fresh offers for displaying advertisements on the existing Unipoles, implying in no uncertain terms that the Corporation was retaining possession of the Unipole structure for the remaining duration of the contract. The contention is that on expiration of the period of contract, the title and the structure was to stand transferred anyways to the Corporation.
3. The dispute is also about the forfeiture of the security deposit, which as per own contention of the respondent Corporation would have been returned to the contractor on successful completion of the contract.
4. Be that as it may, for the contention made by the learned counsel for the respondent Corporation that the decision of the Division Bench of this Court in the judgment and order dated 05.08.2021 would have a material bearing on the claim of the petitioner, suffice it to say that all these issues can very well be looked into by the learned Arbitrator and be adjudicated in the arbitration proceedings itself.
5. This Court at the pre-referral stage would not be in a position to reject the claim by adverting into the merits of the contentions of the learned advocate appearing for the Page 2 of 4 Uploaded by BIJOY B. PILLAI(HC00202) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 21:51:16 IST 2025 NEUTRAL CITATION C/ARBI.P/86/2025 ORDER DATED: 26/09/2025 undefined corporation.
6. For the aforesaid, all objections to the entertainability of dispute are hereby turned down. It is however clarified that the learned Arbitrator shall decide the matter independently without being influenced by any of the observations made hereinabove.
7. Taking note of the above, I pass the following order :-
ORDER
a) The present petition is allowed
b) Hon'ble Mr. Justice Ashutosh J. Shastri Former Judge, High Court of Gujarat, having residence at 18, Trimurti Society, Opp. Vasundhara Society, B/h Navkar School, Gulbai Tekra, Ellisbridge, Ahmedabad - 380015, Mob. No. 9825047078, Email [email protected] is appointed as arbitrator, who is one of the panel arbitrators of the respondents to complete the proceedings strictly in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and both the parties would be governed by the Arbitration Centre (Domestic and International), High Court of Gujarat Rules, 2021.
c) Registry to communicate this order to the sole Arbitrator forthwith by Speed Post.Page 3 of 4 Uploaded by BIJOY B. PILLAI(HC00202) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 21:51:16 IST 2025
NEUTRAL CITATION C/ARBI.P/86/2025 ORDER DATED: 26/09/2025 undefined
d) Pending application/s, if any, stands consigned to records.
(SUNITA AGARWAL, CJ ) BIJOY B. PILLAI Page 4 of 4 Uploaded by BIJOY B. PILLAI(HC00202) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 21:51:16 IST 2025