The Gujarat High Court has temporarily restrained an arbitrator from moving ahead with arbitration proceedings involving Vapi Municipal Corporation and Shashijit Infra Projects Ltd., noting that connected matters are already pending before the court. The interim relief was granted by Justice L. S. Pirzada while issuing notice in a batch of petitions filed by the municipal corporation.
Background of the Case
The petitions were filed by Vapi Municipal Corporation, formerly known as Vapi Nagarpalika, challenging an order and communication issued by a sole arbitrator in connection with disputes arising from lease agreements related to Lakhamdev Lake, Dungra Lake, and Chala Lake.
According to the corporation, the arbitrator had been appointed unilaterally by the opposite party without its consent. The corporation also objected to a communication dated May 16, 2026, through which the arbitrator fixed June 2, 2026, as the next hearing date and stated that failure to file a written statement could result in closure of that right.
The municipal body argued that several related proceedings were already pending before the High Court and that continuation of arbitration at this stage could prejudice its case.
Appearing for the petitioner, the State's counsel submitted that the arbitration proceedings themselves were not legally sustainable. It was pointed out that a connected Special Civil Application and another pending civil application involving the same dispute were already awaiting consideration before the High Court.
The petitioner further contended that if no interim protection was granted, the arbitration could proceed ex parte and its opportunity to place a written defence on record might be lost.
Reliance was also placed on an earlier decision of the High Court concerning matters under the Arbitration Act, where issues relating to jurisdiction and the role of the Public Works Tribunal were discussed.
After hearing the submissions, Justice Pirzada found that the petitions required consideration.
The court noted that related proceedings concerning the parties were already pending and scheduled for hearing on June 18, 2026.
Recording the circumstances, the bench observed that continuation of arbitration before the next hearing could create complications while the High Court was examining the issues raised by the petitioner.
Issuing notice in the petitions, the Gujarat High Court directed that the arbitrator shall not proceed further with the arbitration proceedings and shall not pass any order until the next date of hearing.
“The respondent No. 2 may not proceed with the arbitration proceedings and not pass any order till the next date of hearing,” the court directed.
The matter has been made returnable on June 18, 2026, and the order has been directed to be communicated to the arbitrator forthwith. Direct service was also permitted.
Case Details
Case Title: Vapi Municipal Corporation (Erstwhile Vapi Nagarpalika) v. Shashijit Infra Projects Limited & Anr.
Case Number: R/Special Civil Application Nos. 7763, 7765 & 7766 of 2026
Judge: Justice L. S. Pirzada
Decision Date: June 2, 2026
