Authority: Supreme Court of India

Order Date: 19-08-2026

Case Overview

  • Petitioners: Ashutosh Sharma (Petitioner) filed Special Leave Petition (C) No. 27135/2026 challenging the High Court of Gujarat at Ahmedabad order dated 02-07-2026 in R/FA No. 4935/2023.
  • Respondents: Indore Sahkari Dugdh Sangh & Anr.
  • Bench: Hon'ble Mr. Justice K.V. Viswanathan and Hon'ble Mr. Justice Arun Palli.
  • Counsel for petitioner: Senior Advocate Gaurav Agrawal and team; counsel for respondents: Malak Manish Bhatt and team.
  • The petition questioned the correctness of the High Court order but did not seek a merit-based interference.
  • Both parties consented to a fresh arbitration proceeding from the stage after the original arbitrator closed the respondents' evidence.

Final Outcome

  • The Court declined to interfere with the merits of the impugned order.
  • It appointed Mr. Masoom Shah, Advocate (contact: 9925035242) practising in Ahmedabad, as the new arbitrator.
  • The petitioner is directed to return Rs.2,41,51,933/- to the respondents within eight weeks from the order date.
  • Upon receipt, respondents shall, within one week, place the amount in a Fixed Deposit and submit the Fixed Deposit receipt to the newly appointed arbitrator.
  • The arbitrator’s fees shall be governed by the Fourth Schedule of the Arbitration & Conciliation Act, 1996.
  • Both parties must file undertakings within one week to comply with the obligations specified in the order.
  • The Court noted that a bank guarantee of Rs.50,000/- and two property documents have been submitted to the Commercial Court at Indore for release:

1. Sale Deed page 31/37 No.1430 dated 21.05.1997 by Mr. Mahesh Sharma s/o Sh. Premnarayan Sharma.

2. Sale Deed No.A-1/1847, place 1077 dated 22.06.2011 by Smt. Rakhi Sharma.

  • The Commercial Court at Indore shall release these property documents to the petitioner and discharge the bank guarantee as per the order.
  • The Court emphasized that it has not examined the merits; the fresh arbitrator will decide the dispute independently of the observations of the High Court or this Court.
  • The Special Leave Petition is disposed of in the above terms, and any pending applications, if any, stand disposed of.

Topics: Court Order, Arbitration, Dairy Cooperative