Citation : 2025 Latest Caselaw 6785 Guj
Judgement Date : 19 September, 2025
NEUTRAL CITATION
C/ARBI.P/156/2025 ORDER DATED: 19/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/PETN. UNDER ARBITRATION ACT NO. 156 of 2025
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M/S SADBHAV ENGINEERING LIMITED
Versus
SUWARNA BUILDCON PRIVATE LIMITED
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Appearance:
MS. SANGEETA PAHWA, ADV. FOR THAKKAR AND PAHWA
ADVOCATES(1357) for the Petitioner(s) No. 1
MR PRIYAM M SHAH(12095) for the Respondent(s) No. 1
MR. PURAV SHAH(14455) for the Respondent(s) No. 1
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL
Date : 19/09/2025
ORAL ORDER
Heard the learned counsels appearing for the parties.
2. The prayer for appointment of a substitute Arbitrator is on the ground that the learned Arbitrator appointed vide judgment and order dated 13.09.2024 under Section 11 of the Arbitration and Conciliation Act, 1996 has withdrawn from the office. The submission is that even the order of appointment of the Arbitrator dated 13.09.2024 has been affirmed by the Apex court in Special Leave to Appeal (C) No. 29181 of 2024 vide judgment and order dated 17.01.2025.
3. The submission is that there is no option for the petitioner, but to approach this Court to appoint the substitute Arbitrator to bring the dispute to its logical end.
NEUTRAL CITATION
C/ARBI.P/156/2025 ORDER DATED: 19/09/2025
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4. Taking note of the above, pertinent is to note that the learned advocate appearing for the respondent has referred to Rule 21 of the Rules, 2021, namely the Arbitration Center (Domestic and International), High Court of Gujarat Rules, 2021 to submit that the Center itself is empowered to appoint the Arbitrator and in view of the language employed in sub-section(2) of Section 15 of the Act, 1996, a substitute Arbitrator has to be appointed in accordance with the Rules that were applicable to the appointment of the Arbitrator being replaced. The submission is that the Rules, 2021 will be the relevant rules in view of the language of sub-section(2) of Section 15 of the Act, 1996. This submission is found to be wholly misconceived for two reasons. Firstly, that the initial appointment of the Arbitrator was under Section 11 of the Arbitration and Conciliation Act, 1996 and secondly, that reference of rule 21 of the Arbitration Center Rules, 2021 is wholly misreading of the said Rule, which applies in the case of a direct Arbitration, where the Center appoints the Arbitrator or Presiding Arbitrator.
5. The objections taken for appointment of the substitute Arbitrator by the learned counsel appearing for the respondent is, therefore, turned down.
6. The present petition stands allowed by passing the following order :-
ORDER
(i) Hon'ble Mr. Mr. Justice R.P.Dholaria, Former Judge, High Court of Gujarat, having address at:Residence : 19, Golden Lotus Bunglow, Auda Water Tank
NEUTRAL CITATION
C/ARBI.P/156/2025 ORDER DATED: 19/09/2025
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Lane, Science City Road, Sola, Ahmedabad- 380060, and having Email ID: [email protected] is hereby appointed as the sole Arbitrator to resolve the disputes between the parties in accordance with the Arbitration Centre (Domestic and International), High Court of Gujarat Rules, 2021. Both Parties would also be governed by said Rules.
(ii) Registry to communicate this order to the sole Arbitrator forthwith by Speed Post.
(iii) Pending application/s, if any, stands consigned to records.
(SUNITA AGARWAL, CJ ) C.M. JOSHI
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