Mr.Hiren Shashikant Dhruva And ANR. v. M/S Suraj Constructions Through Its Partner Mr. Aman C. Patel And ORS.

904-ARA-5-2026.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION ARBITRATION APPEAL NO. 5 OF 2026 Mr.Hiren Shashikant Dhruva & Anr.

...Appellants

Versus

M/S Suraj Constructions Through Its Partner Mr. Aman C. Patel & Ors.

...Respondents

Mr. Suyash Sule, for the Appellants.

Mr. Prabhajan Gujar, for Respondent Nos.3 & 4.

CORAM

: SOMASEKHAR SUNDARESAN, J.

DATE : February 12, 2026 ORDER :

1.

Having heard the parties, prima facie, a strong case has been made for staying the impugned order. The impugned order essentially dismisses the Section 8 Application under the Arbitration and Conciliation Act, 1996 on two grounds, namely, (i) that a party that has terminated the Memorandum of Understanding ("MOU") containing the arbitration clause cannot invoke arbitration; and (ii) that the reliefs sought are for declaration of subsistence and enforceability of the MOU and that subsequent transfers should be declared to be illegal and non Digitally signed by ASHWINI JANARDAN VALLAKATI Date:

2026.02.17 14:07:05 +0530 ASHWINI JANARDAN VALLAKATI est and that such reliefs are not arbitrable. February 12, 2026 Ashwini Vallakati

904-ARA-5-2026.doc 2.

Neither of the two findings inspire confidence. The arbitration clause contained in the terminated MOU is severable and even if the MOU is terminated, the arbitration clause would survive. Likewise, the adding of other parties or claiming reliefs against MIDC would not lead to an automatic ouster of arbitrability inasmuch as the right sought under the MOU would be the rights flowing from MIDC. Any cause of action against MIDC can always be pursued through other remedies.

3.

These are merely prima facie views. Since the matter is coming for the first time, it is stood over for final hearing. Meanwhile, in view of the aforesaid prima facie finding, the effect and operation of the Impugned Order shall remain stayed. No further steps shall be taken in the Suit pending hearing and disposal of this Appeal. To ensure that this Appeal does not linger on unnecessarily, it is stood over for "Final Hearing" on March 5, 2026.

4.

All actions required to be taken pursuant to this order shall be taken upon receipt of a downloaded copy as available on this Court's website.

[ SOMASEKHAR SUNDARESAN, J.] February 12, 2026 Ashwini Vallakati