Puri Constructions Pvt. Ltd. v. State of Madhya Pradesh & Ors.
Case Details & Bench
- Court
- High Court
- Hon'ble Judges
- Adarsh Kumar Goel
- R. F. Nariman
- Judgment Date
- 2018-04-18
- Court Decision / Holding
- In terms of the Larger Bench decision, the award shall be treated as having been rendered under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983. The pending Delhi High Court proceedings (FAO(OS) No. 23/1998) and connected matters shall be transferred to the Madhya Pradesh High Court at Jabalpur to be treated as a revision petition under the MP Act, and the remaining arbitration proceedings shall be transferred to the MP Arbitration Tribunal under the MP Act. The parties may take steps for transfer of records, and the appeal is disposed of with a direction for proceedings before the appropriate fora on 9 July 2018.
- Final Disposition
- Appeal disposed of.
Parties to the Case
Appellants / Petitioners
- Puri Constructions Pvt. Ltd.
Respondents
- State of Madhya Pradesh
- Ors.
Legal Representation & Advocates
Counsels for Petitioners
- • A. Kiran Suri
Counsels for Respondents
- • Saurabh Mishra
- • Jugal Kishore Gilda
- • Purushaindra Kumar
- • Naman Nagrath
- • Neeraj Kishan Kaul
- • Parag Triathi
Case Synopsis & Summary
This Supreme Court matter concerns execution of a long-standing arbitral award arising from a 1984 contract for constructing an Assembly building in Madhya Pradesh. An arbitrator, appointed by the Delhi High Court, rendered the award on 21 June 1989, which was made a Rule of the Court on 28 September 1989. Execution was pursued by the appellant, and a Learned Single Judge allowed it on 6 September 1991; the Division Bench in 2012 noted that the enforceability of the decree depended on the fate of FAO(OS) No. 23/1998, which was deferred pending a larger Bench decision. The larger Bench (8 March 2018) held that the dispute must be settled under the Madhyastham Adhikaran Adhiniyam, 1983 (M.P. Act). Since the award was long-past and not challenged, the Court directed that it be treated as having been rendered under the MP Act. Pending Delhi proceedings are to be transferred to the Madhya Pradesh High Court (revision under the MP Act) and the remaining arbitration matters to the MP Arbitration Tribunal, to be dealt with as per the MP Act. The appeal is disposed of with directions for record transfer and for steps before the relevant courts on 9 July 2018. Delay condoned; Leave granted.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant contends that the arbitral award of 1989, though executed in Delhi, must be treated as if rendered under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 in view of the Larger Bench decision in 2018. Since the award has remained unchallenged for decades, it should be deemed to have been passed under the MP Act, enabling disposal of pending proceedings under MP Act provisions. The Delhi High Court’s execution order should thus be superseded, with the proceedings transferred to Madhya Pradesh for revision under the MP Act; the related arbitration proceedings should also be transferred to the MP Arbitration Tribunal for disposition in accordance with the MP Act. The appellant seeks final relief consistent with the MP Act framework and for expeditious resolution of the matter in the MP fora.
Contentions of Respondents
The respondents argue that the Delhi High Court proceedings and the execution should continue in the normal course, as the award and decree were long-standing and undisputed for many years. They contend that the obligation to execute the decree should not be displaced by an MP Act regime unless strictly required by law. They rely on the prior procedural posture and the pending FAO(OS) 23/1998, contending that any shift to MP fora should be carefully justified and procedurally warranted in light of the ongoing litigation in Delhi courts. They resist wholesale transfer of records and insist on maintaining the current forum unless a clear legal mandate compels departure.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Madhya Pradesh Rural Road Development Authority and Anr. v. L.G. Chaudhary Engineers and Contractors | (2012) 3 SCC 495 | Positive | The larger Bench decision (8 March 2018) relies on Chaudhary to apply the MP Act route for settlement of the dispute. |
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