Authority: High Court of Judicature at Bombay
Order Date: 8th September 2026
Case Overview
- Parties: Paresh Construction and Foundation Pvt. Ltd (Applicant) vs. Patel Engineering Ltd (Respondent).
- Background: Patel Engineering was engaged by Mazgaon Dock Limited (MDL) for civil, electrical and mechanical works. Paresh Construction acted as a sub‑contractor to Patel Engineering under the Agreement (Exhibit‑A). The Applicant alleges non‑payment of amounts due under the Agreement.
- Arbitration Clause: Clause 23 of the Agreement provides for arbitration of disputes. The Applicant issued a notice on 4th April 2025 invoking the arbitration clause and requesting the Respondent to concur in the appointment of an arbitrator. The Respondent neither replied nor disputed the existence of the arbitration agreement.
- Respondent’s Contentions: While not disputing the arbitration agreement, the Respondent contended that MDL must first pay it, and therefore no amount is presently due to the Applicant.
- Legal Precedent Cited: The Court referenced Supreme Court judgments – Interplay between Arbitration Agreements under Arbitration and Conciliation Act, 1996 and Stamp Act, 1899 (2024) and SBI General Insurance Co. vs. Krish Spinning (2025) – stating that a referral court’s duty is limited to examining the existence and invocation of an arbitration agreement, not the merits of the claim.
Final Outcome
- The Arbitration Application No. 392 of 2026 is allowed.
- Ms. Apurva Gupte, learned Advocate of this Court, is appointed as the sole Arbitrator to adjudicate all disputes arising out of the Agreement.
- Contact Details of Arbitrator:
- 521, 5th Floor, Commerce House, Nagindas Master Road, Kala Ghoda, Mumbai – 400 001
- Procedural Directions:
- A copy of this order shall be communicated to the Arbitrator by the Applicant’s Advocate within one week of upload on the Court’s website.
- The Applicant must furnish the Arbitrator with the parties’ contact and communication particulars along with a copy of this order.
- The Arbitrator shall forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Arbitration Act to the Applicant’s Advocate for filing in the Court Registry; the Registry will retain the statement and provide a copy to the Respondent.
- Parties shall appear before the Arbitrator, either via video‑conference or at a location indicated by the Arbitrator, to obtain directions on pleadings, witness examination, hearing schedule, etc.
- Arbitrator’s fees shall be as per the Fourth Schedule of the Act and the Bombay High Court (Fee Payable to Arbitrators) Rules, 2018.
- All issues, claims and counter‑claims remain open for adjudication before the Tribunal.
- The arbitration proceedings shall be conducted in Mumbai.
Topics: Arbitration, Construction Contract Dispute