SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(Guj) 12431

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sunita Agarwal, CJ
Suraj Infra Projects – Appellant
Versus
Chief Engineer, Bhopal Zone – Respondent
R/MISC. CIVIL APPLICATION (FOR RECALL) NO. 2443 of 2025|R/PETN. UNDER ARBITRATION ACT/37/2023



Advocates:
For the Appellants/Petitioners: Modassir Khan, Alveera S Kachara
For the Respondents: Harsheel D Shukla

A petitioner must truthfully disclose all material facts, including the receipt of payments and the status of final contractual claims. Intentional suppression of such crucial information constitutes an attempt to mislead the court, thereby disentitling the petitioner to any relief and justifying the dismissal of the application.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11 and 21 - Recall of order - Suppression of material facts - Party seeking appointment of an arbitrator must disclose all material facts, including subsequent payments received under the contract, to avoid dismissal of the application for not coming with clean hands - Execution of a 'No Further Claim' certificate effectively precludes further arbitration claims regarding the same contract. (Paras 1, 9, 10, 12, 13)

(B) Practice and Procedure - Review or Recall of order - When no error is demonstrated on the basis of record, and the petitioner has attempted to mislead the court through concealment of payments and twisting of facts, the court is entitled to reject the application with costs. (Paras 14, 15, 16)

Facts of the case:
The petitioner sought the recall of an order that had rejected a request for the appointment of an arbitrator. The original rejection was predicated on the finding that the petitioner had signed a 'No Further Claim' certificate upon receipt of payments under the contract. It was revealed that the petitioner had also failed to disclose the receipt of subsequent payments after the issuance of the notice for arbitration and prior to filing the arbitration petition.

Findings of Court:
The court observed that the petitioner had deliberately concealed the receipt of material payments and factual details regarding the financial settlement of the contract. The findings in the original order regarding the 'No Further Claim' declaration were found to be consistent with the evidence on record. The failure to disclose these payments exhibited a lack of transparency and an attempt to mislead the court.

Issues: Whether the court’s earlier findings regarding the discharge of claims were erroneous, and whether the concealment of material payments by the petitioner justifies the rejection of the recall application.

Ratio Decidendi: A party approaching the court for relief is under a mandatory duty to disclose all material facts pertaining to the dispute. Suppression or intentional concealment of relevant developments, such as the receipt of payments or signed discharge certificates, disqualifies the party from claiming any relief and warrants summary dismissal with costs.

Result: Application for recall rejected with costs.

Table of Content
1. procedural history and mandate for review. (Para 1 , 2 , 3 , 4)
2. assessment of factual inconsistencies and evidentiary concealment. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. doctrine of clean hands in judicial proceedings. (Para 12 , 13 , 14)
4. final adjudication of review and imposition of costs. (Para 15 , 16)

ORAL ORDER

1. The present application has been filed seeking for recall of the order dated 07.02.2025 passed by this Court in rejecting the Arbitration Petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act, 1996’), noticing that the petitioner – contractor has received payment under the contract/agreement in question and had given a No-More Claim Certificate towards the said payment. However, after receipt of the payment, notice dated 27.05.2019 was sent to the Assistant Garrison Engineer (I) (Army) (Infantry Lines), Jamnagar asking for the payment against of Running Account Receipts (RAR), and final bill on the premise that he has not received RAR payment till date and the final bill had not been paid to it.

2. It is noticed in the judgment under review that the notice invoking arbitration clause was sent on 12.05.2021 and thereafter, the Arbitration Petition was presented on 16.12.2022 seeking for appointment of Arbitrator. It was, thus, opined that invoking of arbitration clause No. 17 of the General Conditions of the contract is nothing but an afterthought. While saying so, it was noted from the reply affidavit filed on behalf of the respondent in Paragraph Nos. ‘6’ and ‘7’ of the judgment under review, which read as under:-

“6) Attention of the Court is invited to Page nos. ‘281’ to ‘283’ of the Paper-book to demonstrate that after receipt of the payment against the final bill, on 20.04.2019, the petitioner contractor made the following declaration:-

“It is certified that I have performed this final bill for claiming entire payment due to me from this contract agreement. This final bills include all claims raised by me from time to time irrespective of the fact whether they are admitted/accepted by the department or not. I now dategorically certified that I have not more claims in respect of this contract beyond these already included in this final bill by me and this amounts so claimed by me shall be in full and final satisfaction of all my claims under this contract agreement I shall hovewer resolve my right to raise claim to the extent desollowed to me from this final bill.”

7) The reference of this declaration contained in the final bill has been made in the response to the letter dated 12.11.2021 sent by the petitioner seeking for appointment of the arbitrator. A perusal of Page No. ‘281’ of the paper-book indicates that in the letter dated 28.07.2022, it was intimated to the petitioner that his request for appointment is not admissible in view of the letter of the headquarter dated 12.11.2021, wherein it was intimated that “the final bill against the above contract was signed by you with clear ‘no further claim certificate’, therefore, as per Condition 65 of IAFW – 2249 General Conditions of the Contract, “No further claim shall be made by you after submission of the final bill”.”

3. On a challenge to the order dated 07.02.2025 of rejection of the application under Section 11 of the Act, 1996, the Apex Court has passed the following order:-

“1. Delay condoned.

2. The learned counsel appearing for the petitioner would submit that the findings recorded in para 8 of the impugned order are contrary to the materials on record. If that be the case, the petitioner should go back to the High Court and point out the error.

3. With the aforesaid, this petition stands disposed of with liberty to go back to the High Court.

4. Pending application(s), if any, stand disposed of.”

4. A careful reading of the order of the Apex Court indicates that while condoning the delay in filing the Special Leave Petition challenging the judgment under rev

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top