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
NEUTRAL CITATION
C/ARBI.P/86/2025 ORDER DATED: 26/09/2025
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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
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C/ARBI.P/86/2025 ORDER DATED: 26/09/2025
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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.
NEUTRAL CITATION
C/ARBI.P/86/2025 ORDER DATED: 26/09/2025
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d) Pending application/s, if any, stands consigned to
records.
(SUNITA AGARWAL, CJ )
BIJOY B. PILLAI
