[Cites 5, Cited by 0]
Bombay High Court
C S Construction India Private Limited vs Union Of India Acting Through Its Deputy ... on 12 March, 2026
2026:BHC-OS:6507
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMMERCIAL ARBITRATION PETITION (L) NO.9020 OF 2026
C.S. Construction India Pvt. ....Petitioner
V/S
Union of India
acting through its Deputy
Engineer, Satara & Ors. ....Respondents
_________
Mr. Hasmit Trivedi with Ms. Leanne Dsouza and Mr. Indra Kumar Lahoti
i/b Praxis Legal for the Petitioner.
Ms. Smita Thakur for Respondent Nos.1 and 2.
__________
CORAM : SANDEEP V. MARNE, J.
DATE : 12 MARCH 2026.
P.C.:
1. This is a Petition filed under Section 9 of the Arbitration and
Conciliation Act, 1996 (Arbitration Act) seeking interim measures before
commencement of the arbitral proceedings. The disputes and differences
have arisen between parties out of performance of Letter of Acceptance
dated 12 June 2024. It is the case of the Petitioner that since workfronts
were not made available to it, the Petitioner decided to foreclose the
contract and accordingly wrote a letter dated 19 May 2025. It appears
that though the terms of tender required Petitioner to provide a Bank
Guarantee, Petitioner has provided a fixed deposit receipt for the amount
of Rs.2,94,00,000/- which is renewed from time to time.
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2. In the present case, the usual argument of Bank Guarantee being
an independent contract cannot be raised since the Petitioner has not
provided the Bank Guarantee.
3. There is no dispute to the position that there is arbitration
agreement under Letter of Acceptance dated 12 June 2024. In my view
therefore, it would be appropriate to refer the dispute to arbitration. The
limited relief that I propose to pass as of today is to restrain the
Respondents from encashing the fixed deposit receipt dated 6 August
2024 till the Arbitral Tribunal decides Application under Section 17 of
the Arbitration Act.
4. Accordingly, I proceed to pass the following order:
A) Mr. Justice M.S. Sanklecha, former Judge of this Court is
appointed as sole Arbitrator to adjudicate upon the disputes and
differences between the parties arising out of the Performance of
Letter of Acceptance dated 12 June 2024. The contact details of the
learned sole Arbitrator are as under:
Office Address:- 311, Churchgate Chambers, 5
Sir Vithaldas Thackersy Marg,
New Marine Lines, Churchgate,
Mumbai - 400 020.
Mobile No.: 99691 01100.
E-mail ID:- [email protected]
B) A copy of this order be communicated to the learned sole
Arbitrator by the Advocates for the Applicant within a period of
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one week from the date of uploading of this order. The Applicant
shall provide the contact and communication particulars of the
parties to the Arbitral Tribunal alongwith 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 Arbitration 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 by him, to obtain
appropriate direction with regard to conduct of the arbitration
including fixing a schedule for pleadings, examination of
witnesses, if any, schedule of hearings etc.
E) The learned sole Arbitrator shall be entitled to the fees
prescribed under the Bombay High Court (Fee Payable to
Arbitrators) Rules, 2018 and the arbitral costs and fees of the
learned sole Arbitrator shall be borne by the parties in equal
portion and shall be subject to the final Award that may be passed
by the Tribunal.
5. Present Petition is converted into Application under Section 17 of
the Arbitration Act, to be decided by the Arbitral Tribunal on its own
merits. Till the Arbitral Tribunal decides Application under Section 17 of
the Arbitration Act, Respondent shall not encash the fixed deposit
receipt No.338482 for Rs.2,94,00,000/- submitted by the Petitioner.
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6. All rights and contentions of the parties on merits are expressly
kept open to be agitated before the Arbitral Tribunal appointed as above.
7. With the above directions, Commercial Arbitration Petition is
allowed and disposed of. There shall be no order as to costs.
(SANDEEP V. MARNE, J.)
Digitally
signed by
SUDARSHAN
SUDARSHAN RAJALINGAM
RAJALINGAM KATKAM
KATKAM Date:
2026.03.13
15:25:16
+0530
