High CourtDivision BenchAppeals disposed of.

Madhya Pradesh Rural Road Development Authority and Anr. v Backbone Enterprises Limited and Anr.

Case / Petition Number:Civil Appeal No. 4012 of 2018
Neutral Citation:[2018] 4 S.C.R. 255

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Adarsh Kumar Goel
  • R. F. Nariman
Judgment Date
2018-04-18
Court Decision / Holding
1. Delay condoned. Leave granted. 2. In view of judgment of this Court in Va Tech Escher Wyass Flovel Ltd. v. MPSE Board & Another, (2011) 13 SCC 261 having been overruled, the jurisdiction to deal with the dispute in question is vested with the M.P. Arbitration Tribunal constituted under the M.P. Madhyastham Adhikaran Adhiniyam, 1983. The direction in the impugned order under Section 11 of the Arbitration and Conciliation Act, 1996 is set aside. 3. The appeals are disposed of. 4. The respondent will be at liberty to take their remedy before the statutory Tribunal in accordance with law. 5. The parties may appear before the M.P. Arbitration Tribunal for further proceedings on 9 July 2018. 6. The appellant may serve a copy of this order on the respondents.
Final Disposition
Appeals disposed of.

Parties to the Case

Appellants / Petitioners

  • Madhya Pradesh Rural Road Development Authority
  • Anr.

Respondents

  • Backbone Enterprises Limited
  • Anr.

Case Synopsis & Summary

The Supreme Court hears Civil Appeal No. 4012 of 2018 filed by the Madhya Pradesh Rural Road Development Authority and another challenging an order under Section 11 of the Arbitration and Conciliation Act, 1996, issued in Arbitration Case No. 7 of 2011 by the Madhya Pradesh High Court. The appeal, heard by Justice Adarsh Kumar Goel and Justice R. F. Nariman, addresses the arbitration regime created by the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 and the scope of the Arbitration Tribunal’s jurisdiction. The Court notes that the Va Tech Escher Wyass Flovel Ltd. v. MPSE Board & Another (2011) 13 SCC 261 had been overruled, thereby affecting the jurisdictional question. The issue is whether the dispute must be resolved by the MP Arbitration Tribunal or can be entertained under the 1996 Act by the arbitrator appointed under Section 11. The Court condones the delay and grants leave to appeal, and then holds that, in light of the overruled Va Tech decision, the MP Arbitration Tribunal has jurisdiction. The impugned Section 11 order is set aside; the appeals are disposed of; and the respondent is free to pursue remedies before the statutory tribunal in accordance with law. The parties are directed to appear before the MP Arbitration Tribunal on 9 July 2018 for further proceedings. The appellant is to serve copies of this order on the respondents.

Provisions of Law Cited

Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983Arbitration and Conciliation Act, 1996, Section 11

Submissions & Arguments

Contentions of Appellants / Petitioners

,null

Contentions of Respondents

,null

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Va Tech Escher Wyass Flovel Ltd. v. MPSE Board & Another(2011) 13 SCC 261OverruledThe judgment notes that the Va Tech Escher Wyass Flovel decision had been overruled by subsequent rulings and thus its authority for jurisdiction is nullified.

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Extracted Judgment Text

Exact text extracted from official judgment records.

255 [2018] 4 S.C.R. 255 MADHYA PRADESH RURAL ROAD DEVELOPMENT A AUTHORITY AND ANR. v. ## BACKBONE ENTERPRISES LIMITED AND ANR. (Civil Appeal No. 4012 of 2018) B APRIL 18, 2018 ## **[ADARSH KUMAR GOEL AND R. F. NARIMAN, JJ.]** _Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983:_ _Jurisdiction of Arbitration Tribunal – Held: Since the *_ Va Tech _case had been overruled, jurisdiction to deal with the dispute is vested with the Arbitration Tribunal constituted under the Act – Impugned order is set aside._ _*Va Tech Escher Wyass Flovel Ltd. v. MPSE Board & Another_ **(2011) 13 SCC 261 – Stood overruled.** C D ## **Case Law Reference** **(2011) 13 SCC 261 Stood overruled Para 2** CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4012 of 2018. E From the Judgment and Order dated 11.05.2011 of the High Court of Madhya Pradesh at Indore in Arbitration Case No. 7 of 2011. ## WITH Civil Appeal Nos. 4013 and 4014 of 2018. Saurabh Mishra, AAG., Jugal Kishore Gilda, Purushaindra Kumar, Advs. Gen., Naman Nagrath, Neeraj Kishan Kaul, Parag Triathi, Ms. Kiran Suri, Sr. Advs., Harsh Parashar, Jubin Prasad, Aman Pandey, Jasdeep S. Dhillon, Prabhat K. Chaurasia, Ms. Renuka Sahu, Jay Savla, Amar Varun, Shantanu Krishna, Ms. Anusuya Salwan, Dhurav Mishra, Divyanshu Kumar Srivastav, Akash Lamba, Viren Sibal, Vivekananda B., Vikas Sood, Apporv Kurup, Ms. Isha Mital, Dr. Harsh Pathak, Ms. Shweta Mahajan, Mohit Chaubey, Siddharth Shukla, Neeraj Shekhar, Arjun Garg, Mishra Saurabh, Sridhar Potaraju, Sudhir Mishra, Prabhat Kumar, Ms. Petal Chandok, Ms. Ankita Sharma, Rishabh, F G H 255 256 SUPREME COURT REPORTS [2018] 4 S.C.R. - A M. R. Shamshad, Aditya Samaddar, B. S. Banthia, Ms. Swarupama Chaturvedi, Saurabh S. Sinha, Aditya Dev Triguna, Sunil Singh Parihar, M/S. AP & J Chambers, Prafulla Kumar Behera, Manish K. Bhardwaj, S. S. Nehra, Ms. Anuradha Mishra, Ms. Vanshaja Shukla, Varun Mohan, Swastik Singh, Manish Yadav, Ms. Swarupama Chaturvedi, B.N. Dubey, Ms. Devika Gulati, Hitendra Nath Rath, Mayank Kshirsagar, Pavesh - B Joshi, Chavu Ambwani (For M/S. AP & J Chambers), B. K. Satija, Sumit Attri, K. Krishna Kumar, Hitendra Nath Rath, Nilava Bandyopadhayay, Rahul Pandey, Advs. for the appearing parties. The following Order of the Court was passed: C ## **O R D E R** 1. Delay condoned. Leave granted. 2. In view of judgment of this Court in Va Tech Escher Wyass Flovel Ltd. v. MPSE Board & Another, (2011) 13 SCC 261 having been overruled, the jurisdiction to deal with the dispute in question is vested D with the M.P. Arbitration Tribunal constituted under the M.P. Madhyastham Adhikaran Adhiniyam, 1983. The direction in the impugned order under Section 11 of the Arbitration and Conciliation Act, 1996 is set aside. 3. The appeals are disposed of. E 4. The respondent will be at liberty to take their remedy before the statutory Tribunal in accordance with law. 5. The parties may appear before the M.P. Arbitration Tribunal for further proceedings on 9[th] July, 2018. F 6. The appellant may serve a copy of this order on the respondents. Kalpana K. Tripathy Appeals disposed of. G H