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2026 Supreme(Online)(Bom) 216

HIGH COURT OF BOMBAY
HON'BLE SHRI JUSTICE SANDEEP V. MARNE
Sowil Ltd – Appellant
Versus
Deputy Chief Engineer Indian Railways – Respondent


2026:BHC-OS:2407 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 CORAM : SANDEEP V. MARNE, J.

Digitally signed by NEETA NEETA SHAILESH SHAILESHSAWANT Reserved On :14 January 2026.

SAWANT Date:

2026.01.28

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 clai

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