Sharda Construction And Corporation PVT LTD Through Its Authorized Representative Mr Kapil M Jadhav vs. The Union Of INDIA, Ministry Of Road Transport And Highways And Others
Original PDF →Facts
Sharda Construction and Corporation Pvt Ltd (the petitioner) entered into a road construction agreement dated 30/11/2018 with the Union of India and others (the respondents). Clause 26.3.1 of the agreement stipulated that unresolved disputes would be settled by arbitration. The petitioner had previously filed a Writ Petition seeking a refund of GST, and by an order dated 30/08/2023, they were directed to seek an amicable settlement. As settlement failed, the petitioner invoked Clause 26.3.1 by issuing a notice, to which the respondents did not respond. Consequently, the petitioner filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator.
Held
The Court held that the dispute, which pertains to GST refunds and arises from the construction agreement dated 30/11/2018, is arbitrable. The Court found that Clause 26.3.1 of the agreement explicitly provides for arbitration in the event of disputes not resolved amicably. The Court noted that the respondents, while initially questioning arbitrability, acknowledged that the dispute arose from the agreement and concerned refunds. Therefore, exercising powers under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Court found it appropriate to appoint an arbitrator. The parties agreed to the appointment of Advocate Mr. Girish V. Wani as the sole arbitrator. The Court directed the communication of the order to the arbitrator, requested disclosure statements, and outlined procedures for appearance, interim applications, and the seat of arbitration, leaving all contentions open to be urged before the arbitrator.
Key Issues
1. Whether the dispute regarding the refund of GST, arising from the construction agreement dated 30/11/2018, is arbitrable, as contemplated under Clause 26.3.1 of the said agreement? The petitioner argued that Clause 26.3.1 of the agreement clearly mandates arbitration for any dispute not resolved amicably, and that their claim for GST refund falls within the scope of such disputes. They relied on the agreement's arbitration clause to support their contention. The respondents, while initially submitting that the issue involved is not arbitrable, conceded that considering Clause 26.3 of the agreement, the dispute arises out of the said agreement and relates to certain refunds. They did not present any specific arguments against arbitrability beyond this initial reservation.
Sections Cited
Section 11, Section 11(6), Section 11(8), Section 12(1), Section 16, Section 17
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
following order : 925 Arb Appln 12-2025 a] Appointment of Arbitrator :- Advocate Mr. Girish V. Wani is appointed to act as sole arbitrator to adjudicate upon the disputes between the parties. b] Communication to Arbitrator of this order : (i) A copy of this order will be communicated to the learned Sole Arbitrator by the Advocates for the applicant within one week from the date this order is uploaded. (ii) In addition, within one week of this order being uploaded, the Registry will forward an ordinary copy of this order to the learned Sole Arbitrator at the following post and email addresses : Arbitrator : Advocate Mr. Girish V. Wani Address : Flat No. D-6, Tirupati Park, N-4, CIDCO, Gurusahani Nagar, Aurangabad – 431 005. Phone No. : 9823187829, 0240-2451489 E-mail : wanigirish@gmail.com c] Disclosure : The learned Sole Arbitrator is requested to forward the necessary statement of disclosure under Section 11 (8) read with Section 12 (1) of the Arbitration Act to the Registrar of this Court, referencing this arbitration application, as soon as possible, and in any case sufficiently before entering upon the reference to arbitration. That statement will be retained by the Registrar on the file of this application. Copies will be given to both sides. 925 Arb Appln 12-2025 d] Appearance before the Arbitrator : Parties will appear before the learned Sole Arbitrator on such date and at such place as the learned Sole Arbitrator nominates and the parties to obtain appropriate directions from the arbitrator in regard to fixing a schedule for completing pleadings, etc. e] Contact / communication information of the parties : Contact and communication particulars are to be provided by both sides to the learned Sole Arbitrator within one week of this order being uploaded. The information is to include a valid and functional email address. f] Section 16 application : The respondent is at liberty to raise all questions of juri iction within the meaning of section 16 of the Arbitration Act. All contentions are left open. g] Interim Application/s : (i) Liberty to the parties to make an interim application or interim applications including (but not limited to) interim applications under Section 17 of the Arbitration & Conciliation Act, 1996 before the learned Sole Arbitrator. (ii) Any such application will be decided in such manner and within such time as the learned Sole Arbitrator deems fit. 925 Arb Appln 12-2025 h] Fees : As per the Arbitration and Conciliation Act. i] Sharing of costs and fees : As per the Arbitration and Conciliation Act. J] Venue and seat of arbitration : Seat of the arbitration would be governed by the provisions of the agreement executed between the parties. All the contentions of the parties are kept open to be urged before the learned Arbitrator.
( ARUN R. PEDNEKER, J. ) vj gawade/-.
Reproduced from the public record of the Bombay High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.