Sowil Ltd vs Deputy Chief Engineer Indian Railways

Judgment text excerpt

Neeta Sawant CARAP-688-2025 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION APPLICATION NO. 688 OF 2025 M/s. Sowil Limited …..APPLICANT : VERSUS : Deputy Chief Engineer (Construction) Bhusawal ….RESPONDENT Mr. Shardul Singh with Mr. Smeet Savla & Ms. Priyal Gandhi i/b M/s. SHS Chambers, for Applicant Mr. Narayan Bubna with Ms. Pooja Malik, for Respondent Digitally signed by NEETA CORAM : SANDEEP V. MARNE, J. NEETA SHAILESH SHAILESH SAWANT SAWANT Date: 2026.01.28 Reserved On :14 January 2026. 18:55:26 +0530 Pronounced On : 28 January 2026. Judgment: 1) This is an application under Section 11 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) for appointment of arbitrator for adjudication of disputes and differences between the parties arising out of contract dated 7 May 2018. While there is no dispute between the parties about existence of arbitration agreement, the clause contains a restrictive condition for arbitration. The relevant clause in the contract provides for resolution of disputes by arbitration only to the extent of 20% of the value of the contract. The value of the contract was Rs.84,52,157.61/- whereas the estimated claim amount is Rs.3 crores and accordingly Railways have opposed appointment of arbitrator. _____________________________________________________________________________ PAGE NO. 1 of 36 28 JANUARY 2026 Neeta Sawant CARAP-688-2025 2) A tender notice was issued by the Respondent-Central Railways on 10 November 2017 for execution of work of preparation of design and structural drawings for major and important bridges for the upcoming Manmad- Jalgaon 3 rd line project. The Applicant participated in the tender process and was a successful bidder. Letter of Acceptance dated 12 Febru