Commercial Court dismisses Raj State Warehousing Corporation objection to arbitrator, imposes fine of ₹30 lakh on officials

A recent ruling by the judge of the Commercial Court in Jaipur involving the Rajasthan State Warehousing Corporation (RSWC) has sparked widespread discussion across the bureaucratic circles.

- Rajendra Chhabra

In the judgment, the court has imposed a penalty of Rs 30 lakh on the concerned and responsible officers of the RSWC. The amount is to be recovered from these officers and deposited into the account of the Registrar, Rajasthan High Court, Jodhpur by August 12, 2025.

The matter pertains to an ongoing dispute between the RSWC and a private firm, currently under consideration in the Commercial Court. Retired Judge Karni Singh Rathore was appointed as the sole arbitrator to resolve issues arising in three separate cases related to the Corporation.

Although the cases are pending with the arbitrator, the RSWC administration recently filed an application before Justice Dinesh Kumar Gupta of the Commercial Court, seeking the removal of the arbitrator—nearly one and a half years after his appointment.

The application cited that the arbitrator had previously ruled against the Corporation in several cases, which formed the basis for seeking his removal. RSWC argued that, under such circumstances, it would not be in the Corporation’s best interest to entrust new arbitration matters to the same arbitrator.