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) 16850

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HONOURABLE MR.JUSTICE D.N.RAY
GUJARAT AGRO INDUSTRIES CORPORATION LIMITEDV/sKUBER CORPORATION
R/SCA/6438/2026



IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 6438 of 2026 ======================================

GUJARAT AGRO INDUSTRIES CORPORATION LIMITED Versus KUBER CORPORATION ======================================

Appearance:

MS MANISHA LAVKUMAR, SENIOR ADVOCATE assisted by MS GARIMA MALHOTRA(11392) and MR RAJU VAYS for the Petitioner(s) No. 1 ======================================

CORAM:HONOURABLE THE CHIEF JUSTICE MRS.

JUSTICE SUNITA AGARWAL and HONOURABLE MR.JUSTICE D.N.RAY Date : 04/05/2026

ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MRS.

JUSTICE SUNITA AGARWAL)

1. This petition invoking extra-ordinary supervisory jurisdiction of High Court under Article 227 of the Constitution of India has been filed to challenge the legality, propriety and correctness of the judgment and order dated 24.02.2026 passed by the 3rd Additional District Judge & Commercial Court at Gandhinagar, in rejecting the application under Section 37 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’ 1996’) bearing Commercial Civil Miscellaneous Application No.17 of 2025.

2. The appeal under Section 37 of the Act’ 1996 was filed by the petitioner herein challenging the interim award / order dated 29.09.2025 passed by the learned Arbitrator under Section 17 of the Act’ 1996, staying the blacklisting order issued against the respondent herein and further with the direction to return / lease of the bank guarantee furnished by the respondent in connection with the performance of the work awarded by the petitioner to the respondent under the tender bearing Notice No.1/2021-2022.

3. Certain facts placed before us are relevant to the noted to record our prima facie view as to the entertainability of the present petition under Article 227 of the Constitution of India, to interfere in an interlocutory award / order passed by the learned Arbitrator during the course of the arbitration proceedings.

4. Ms. Manisha Lavkumar, learned Senior Advocate assisted by Ms Garima Malhotra and Mr. Raju Vyas, learned advocates appearing for the petitioner would submit that the respondent herein has been awarded a contract dated 17.11.2021 for a period of three years commencing from 18.11.2021, for providing agricultural services relating to National Programme for Organic Production in Dang District, State of Gujarat.

5. It seems that after issuance of the show-cause notice dated 28.11.2024, a notice invoking arbitration clause under Section 21 of the Act’ 1996 was sent to the petitioner herein namely, Gujarat Agro Industries Corporation Ltd. on 27.03.2025. The learned sole Arbitrator was appointed by mutual consent of the parties on 19.06.2025. The letter dated 19.06.2025 was sent by the petitioner namely, Gujarat Agro Industries Corporation Ltd. accepting the appointment of Arbitrator. The blacklisting order dated 29.09.2025 was passed after issuance of the show-cause notice dated

30.08.2025 calling upon the respondent to explain the circumstances brought therein.

6. The statement of claim along with the application under Section 17 of the Act’ 1996 was filed by the respondent on 04.10.2025 wherein the prayers were made to stay the blacklisting order as also restraining the respondent from proceeding further with the fresh bid dated 11.07.2025 or any similar tender for work awarded under the work order dated 17.11.2021, besides other reliefs sought in the nature of interim relief, such as, protection of bank guarantee; restraining the respondent from invoking, encashing, or taking any coercive action in respect of the performance bank guarantee dated 24.11.2021, 26.12.2023 and 26.02.2024; stay of recovery pursuant to the show-cause notice dated 28.11.2024; directing the respondent to furnish the security as due to the claimant / respondent herein.

7. After hearing the parties, the learned Arbitrator passed the impugned order dated 27.10.2025 staying the blacklisting order and directed for release of bank guarantee to the claimant.

8. The challenge to the

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