Gujarat High Court
Shree Digvijay Cement Company Limited vs Cge Shree Digvijay Cement Energy ... on 25 April, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/FA/1144/2025 ORDER DATED: 25/04/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1144 of 2025
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2025
In R/FIRST APPEAL NO. 1144 of 2025
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SHREE DIGVIJAY CEMENT COMPANY LIMITED
Versus
CGE SHREE DIGVIJAY CEMENT ENERGY PRIVATE LIMITED &
ANR.
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Appearance:
MR MIHIR JOSHI, SR. ADVOCATE and MR. DEVANG NANAVATI,
SR. ADVOCATE assisted by MR DIGANT M POPAT and MR. NIHAR
THAKKAR for the Appellant(s) No. 1
MR MANISH BHATT, SR. ADVOCATE assisted by MS NEEHA
NAGPAL, MR MUNJAAL M BHATT, MR. MAYUR
KISHANCHANDANI AND MS. KHUSHI MEHTA for the
Defendant(s) No. 1,2
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 25/04/2025
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE
MRS. JUSTICE SUNITA AGARWAL)
1. Heard Mr.Mihir Joshi, learned senior advocate and Mr.
Devang Nanavati, learned senior advocate assisted by
Mr. Digant M. Popat and Mr. Nihar Thakkar for the
appellant and Mr. Manish Bhatt, learned senior advocate
assisted by Ms. Neeha Nagpal, Mr. Munjaal M. Bhatt,
Mr. Mayur Kishanchandani and Ms. Khushi Mehta for
the respondents and perused the record.
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2. The present appeal has arisen out of an judgment and
order dated 05.04.2025 passed by the Commercial Court
in rejecting the application under Section 9 of the
Arbitration and Conciliation Act, 1996 filed by the
appellant herein on the ground of lack of jurisdiction by
reading the clauses of the agreement arrived at between
the rival parties.
3. After a brief submission, learned counsels for the parties
would submit that the parties have agreed for initiation
of arbitration proceedings to bring their disputes to its
logical end. The name of the arbitrators to be appointed
by the rival parties have been placed before us. The
name of Hon'ble Mr. Justice Pradeep P. Bhatt, former
Judge, High Court of Gujarat has been suggested to be
appointed as arbitrator on behalf of the appellant
whereas, Hon'ble Mr. Justice S.H. Vora, former Judge,
High Court of Gujarat is suggested to be appointed on
behalf of the respondents no.1 and 2. With the
appointment of two arbitrators with the consent of the
parties, the presiding arbitrator (3 rd arbitrator) will be
appointed by the two arbitrators so appointed. All issues
pertaining to the dispute between the parties are
obviously to be adjudicated by the learned arbitral
tribunal. The learned advocates appearing for the
parties would submit that the parties have agreed to
cooperate with the arbitral tribunal for early disposal of
their dispute.
4. In order to prove bonafide of the appellant, against
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C/FA/1144/2025 ORDER DATED: 25/04/2025
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whom allegations are of non-payment of dues towards
supply of electricity, the outstanding amount of Rs. 9
crores uptil date is to be deposited with the Registrar
General of this Court by the appellant in two
installments of 50% each. The first installment of 50% of
the total amount shall be deposited on or before
02.05.2025 and the remaining 50% amount shall be
deposited on or before 12.05.2025. 50% of the total
outstanding (of Rs. 9 crores), as agreed by the appellant
to be deposited by 02.05.2025 shall be released in favour
of the respondents after due verification. The remaining
deposits which are to be made as second installment
uptil 12.05.2025 shall be invested in a fixed deposit
account of a nationalised bank. The deposits made as
per the direction given hereinabove shall be subject to
the outcome of the proceedings before the arbitral
tribunal. It is also agreed by the appellant, as submitted
by the learned senior advocate on their behalf that the
appellant shall continue to pay the current dues towards
the invoices/bills raised by the respondents.
5. We may make it clear that we have not entered into the
merits of the claims of the parties and all issues
pertaining to the dispute between them including the
legal issue of jurisdiction of the Civil Court as
adjudicated vide judgement impugned dated 05.04.2025
are kept open to be agitated in an appropriate
proceedings in future. It is further clarified that any
observations made in the judgment and order dated
05.04.2025, subject matter of challenge herein, will not
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C/FA/1144/2025 ORDER DATED: 25/04/2025
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come in the way of the parties in any proceedings.
6. With the above, the appeal stands disposed of.
Connected civil application would not survive and shall
stand disposed of accordingly.
(SUNITA AGARWAL, CJ )
(PRANAV TRIVEDI,J)
BIJOY B. PILLAI
