High CourtDivision BenchAppeals disposed of.

State of Chhattisgarh and Anr. v. M/S. KMC Construction Limited

Case / Petition Number:Civil Appeal No. 4257 of 2018 (also CA Nos. 4258 and 4259 of 2018)
Neutral Citation:[2018] 4 S.C.R. 270

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Adarsh Kumar Goel
  • R. F. Nariman
Judgment Date
2018-04-18
Court Decision / Holding
The impugned direction under Section 11 of the Arbitration and Conciliation Act, 1996 cannot be sustained and is set aside. The parties are relegated to the MP Arbitration Tribunal which may decide the dispute as per the MP Madhyastha Adhikaran Adhiniyam, 1983. The appeals are disposed of. The parties may appear before the Tribunal for further proceedings on 9 July 2018. It will be open to the respondents to file the very same claim which has already been filed before the Arbitrator.
Final Disposition
Appeals disposed of.

Parties to the Case

Appellants / Petitioners

  • M/S. KMC Construction Limited

Respondents

  • State of Chhattisgarh
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Ms. Kiran Suri, Sr. Advs.
  • • Ms. Renuka Sahu
  • • Jay Savla
  • • G Amar Varun
  • • 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

Counsels for Respondents

  • • Saurabh Mishra, AAG.
  • • Jugal Kishore Gilda
  • • Purushaindra Kumar, Advs. Gen.
  • • Naman Nagrath
  • • Neeraj Kishan Kaul
  • • Parag Triathi
  • • Harsh Parashar
  • • Jubin Prasad
  • • Aman Pandey
  • • Siddharth Shukla
  • • Neeraj Shekhar
  • • Arjun Garg
  • • Mishra Saurabh
  • • Sridhar Potaraju
  • • Sudhir Mishra
  • • Prabhat

Case Synopsis & Summary

This civil appeal concerns the jurisdiction to adjudicate a dispute arising from contractual work governed by the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 (MP Act). The High Court of Chhattisgarh had dealt with an arbitration application under the Arbitration and Conciliation Act, 1996 (Act, 1996), and the Supreme Court, by invoking its own precedent in MP Rural Road Development Authority v. L.G. Chaudhary Engineers and Contractors (2012) 3 SCC 495, held that the Madhya Pradesh Arbitration Tribunal constituted under the MP Act has exclusive jurisdiction to decide disputes of this nature. The Court observed that an order under Section 11 of the Act, 1996 directing the parties to proceed under the 1996 Act cannot be sustained in light of the exclusive jurisdiction conferred on the MP Arbitration Tribunal. Consequently, the matter is relegated to the MP Arbitration Tribunal to adjudicate the dispute in accordance with the MP Act. The Court condoned delay, granted leave, and disposed of the appeals, directing the parties to appear before the Tribunal on 9 July 2018. The respondents were permitted to file the same claim already filed before the arbitrator. The judgment relies on the authority that MP Act provides exclusive adjudicatory reach over the dispute between the State authorities and the contracting entity, KMC Construction Limited.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Exclusive jurisdiction of Arbitration Tribunal under MP Madhyastham Adhikaran Adhiniyam, 1983 (doctrine)

Submissions & Arguments

Contentions of Appellants / Petitioners

The applicants (KMC Construction Limited) contest the reliance on the 1996 Arbitration Act Section 11 route in the context of MP Act's exclusive jurisdiction. They advocate that the dispute should be resolved under the framework of MP Madhyastha Adhikaran Adhiniyam, 1983, with the MP Arbitration Tribunal empowered to decide the matter as per the Act and that any contrary directive would undermine the MP Act's scheme.

Contentions of Respondents

The respondents argued that the MP Arbitration Tribunal has exclusive jurisdiction to adjudicate the dispute under the MP Act, and that the directive under Section 11 of the Arbitration and Conciliation Act, 1996 is unsustainable. They sought relegation of the dispute to the MP Tribunal in accordance with the MP Act.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Madhya Pradesh Rural Road Development Authority and Anr. v. L.G. Chaudhary Engineers and Contractors(2012) 3 SCC 495PositiveRelied upon by the Court to establish that the MP Act tribunal has exclusive jurisdiction over such disputes.

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Extracted Judgment Text

Exact text extracted from official judgment records.

270 SUPREME COURT REPORTS[2018] 4 S.C.R. 270 [2018] 4 S.C.R. A ## STATE OF CHHATTISGARH AND ANR. v. ## M/S. KMC CONSTRUCTION LIMITED (Civil appeal No. 4257 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: The Arbitration_ - C _Tribunal constituted under the Act has the exclusive jurisdiction to deal with the dispute in question – Impugned direction set aside – Matter relegated to the Arbitration Tribunal constituted under the Act._ _Madhya Pradesh Rural Road Development Authority_ D _and Anr. v. L.G. Chaudhary Engineers and Contractors_ **(2012) 2 SCC 495 : [2012] 2 SCR 162** _**–**_ **relied on.** ## **Case Law Reference** **[2012] 2 SCR 162 relied on Para 3** E CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4257 of 2018. From the Judgment and Order dated 10.07.2018 of the High Court of Chhattisgarh at Bilaspur in Arbitration Application No. 44 of 2016. ## WITH ## F C. A. Nos. 4258 and 4259 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, G 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 H 270 STATE OF CHHATTISGARH v. M/S. KMC CONSTRUCTION LIMITED 271 Kumar, Ms. Petal Chandok, Ms. Ankita Sharma, Rishabh, 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, B Ms. Devika Gulati, Hitendra Nath Rath, Mayank Kshirsagar, Pavesh 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. We have heard learned counsel for the parties and perused the record. D 3. In view of judgment of this Court in Madhya Pradesh Rural Road Development Authority and Anr. v. L.G. Chaudhary Engineers and Contractors, (2012) 3 SCC 495 and the order passed by this Court on 8[th] March, 2018 in the same matter, the M.P. Arbitration Tribunal constituted under the M.P. Madhyastham Adhikaran Adhiniyam, 1983, (M.P. Act) has the exclusive jurisdiction to deal with the dispute in question. E Accordingly, the impugned direction under Section 11 of the Arbitration and Conciliation Act, 1996 cannot be sustained and is set aside. 4. The parties are relegated to M.P. Arbitration Tribunal which may decide the dispute as per provisions of M.P. Madhyastham Adhikaran Adhiniyam, 1983 (M.P. Act). F 5. The appeals are disposed of. 6. The parties may appear before the Tribunal for further proceedings on 9[th] July, 2018. 7. It will be open to the respondents to file the very same claim which has already been filed before the Arbitrator. G Kalpana K. Tripathy Appeals disposed of. H