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2026 DAILYLAW 4168 (GUJ)

GUJARAT WATER SUPPLY AND SEWERAGE BOARD v. M/S SPML INFRA LTD.

SCA/2912/2023 · 2026-09-23

D N Ray, Sunita Agarwal

body2026

Judgment text

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C/SCA/2912/2023(GJHC240027602023) JUDGMENT DATED: 23/09/2026 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 2912 of 2023 ========================================================== GUJARAT WATER SUPPLY AND SEWERAGE BOARD Versus M/S SPML INFRA LTD. ========================================================== Appearance: MR.NISARG DESAI, ADVOCATE WITH MR.ISA HAKIM,ADVOCATE WITH MR. YASH MODI, ADVOCATE FOR GANDHI LAW ASSOCIATES(12275) for the Petitioner(s) No. 1 P M BUCH(7383) for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL and HONOURABLE MR.JUSTICE D.N.RAY Date : 23/09/2026 ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL) 1. Heard Mr.Nisarg Desai, learned advocate with Mr.Isa Hakim, learned advocate with Mr.Yash Modi, learned advocate for Gandhi Law Associates-petitioner and Mr. P.M.Buch, learned advocate for the respondent. 2. The present petition invoking extraordinary supervisory jurisdiction of the High Court under Article 227 of the Constitution of India is pending since February 2023, and has been filed against an interlocutory order dated 13.09.2022 passed by the Court under Section 34 of the Arbitration and C/SCA/2912/2023(GJHC240027602023) JUDGMENT DATED: 23/09/2026 Conciliation Act, 1996, which reads as under:- “ORDER i. Present application stands allowed. ii. The Respondent is temporarily restrained from executing, enforcing or taking any action in furtherance of the impugned Award dated 04.12.2017, as corrected on 31.01.2018 passed by Ld. Arbitrator till final disposal of the application filed under Section 34 of the Act, subject to deposit of 50% of the decretal amount alongwith 14% interest per annum from 01.01.2011 (as awarded) by the Applicant, before this Court within four months from the date of this order, out of which the Respondent is permitted to withdraw half of the amount unconditionally and to secure remaining half of the amount, the Applicant shall provide Bank Guarantee in favour of Respondent, which shall be subject to the final outcome of Appliction filed under section 34 of the Act.” 3. It may be noted that on the presentation of the present petition, an interim order dated 21.02.2023 has been passed, which reads as under:- “1. Notice returnable on 20.03.2023. 2. Till the next date of hearing, there shall be stay against the operation, execution and implementation of the order dated 13.09.2022 passed by learned Commercial Judge, City Civil and Sessions Court, Ahmedabad below Exh.7 in Commercial Civil Misc. Application No.312 of 2021 (old No.35 of 2018) qua deposit 50% of the decreetal amount along with 14% interest per annum from 01.01.2011 as awarded, on condition to deposit the said amount before this Court within a period of two weeks from today. The order of disbursement shall remain in abeyance. 3. In addition of normal mode of service, petitioner is permitted to serve the notice through email as well as R.P.A.D.” C/SCA/2912/2023(GJHC240027602023) JUDGMENT DATED: 23/09/2026 4. It is submitted by Mr.Nisarg Desai, learned advocate for the petitioner that 50% of the decretal amount along with 14% interest per annum from 01.01.2011 as awarded has been deposited before this Court within the time provided therein. 5. The contention is that, in case, the respondent is permitted to withdraw the same as per the conditions in the impugned order dated 13.09.2022, the petitioner may not be in a position to recover the same. 6. However, the fact remains that though there is no interim order staying further proceedings in the application under Section 34, however, it is intimated to us that the same is pending as on date and the next date fixed in the matter is 10.10.2026. 7. Taking note of the above, though we do not find any error in the opinion drawn by the Court under Section 34 in the impugned order dated 13.09.2022, but noticing the fact that Section 34 application remained pending for more than C/SCA/2912/2023(GJHC240027602023) JUDGMENT DATED: 23/09/2026 four years, we find it fit and proper to issue directions to the concerned Commercial Court to decide the application under Section 34 of the Act, 1996, challenging the arbitral award dated 04.12.2017 in an expeditious manner, while keeping intact the conditions of the interim order dated 21.02.2023 passed in the present petition. We further direct that the amount deposited by the petitioner herein under the aforesaid order before this Court be transmitted to the Court concerned before whom the proceedings under Section 34 are pending. 8. The concerned Commercial Court is directed to conduct the hearing of the Commercial Civil Application No. 312 of 2021 (old No.35 of 2018), on the next date fixed, or on a date to be fixed within a further period of two weeks, thereafter. Both the parties are mandated to cooperate in the early hearing and disposal of the application. The Commercial Court shall make an endeavor to decide the application under Section 34 finally, as expeditiously as possible, preferably within a period of four weeks from the date of conclusion of hearing. C/SCA/2912/2023(GJHC240027602023) JUDGMENT DATED: 23/09/2026 9. With the above observations and directions, the present petition stands disposed of. Needless to say that this Court has not entered into the merits of the claim of the parties. (SUNITA AGARWAL, CJ ) (D.N.RAY,J) BINA SHAH Original copy of this order has been signed by the Hon'ble Judges. Digitally signed by: BINA A SHAH(HC00353), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 30/09/2026 13:32:17