Neutral Citation: 2024 INSC 643
Cause Title: M/S MODERN BUILDERS VS. THE STATE OF MADHYA PRADESH
Case Number: CIVIL APPEAL NOS. 8528-8529 OF 2024
Judgment Date: August 30, 2024
Quorum/Bench: Hon'ble Justice Augustine George Masih, and Hon'ble Justice Abhay S Oka
The appellant was appointed as a contractor to construct a minor bridge. The contract was granted by the first respondent–State of Madhya Pradesh. The second respondent, Executive Engineer, National Highway Division Sagar, Madhya Pradesh, rescinded the contract by the letter dated 9th November 2001. Clause 29 in the work order incorporated an arbitration clause. The appellant requested for constitution of an Arbitral Board. The said request was rejected. Even the subsequent representation was rejected. Therefore, the appellant applied for a reference to the Madhya Pradesh Arbitration Tribunal, Bhopal.
Paragraph 6 discusses the decision of the Court in the case of Madhya Pradesh Rural Road Development Authority, after considering the provisions of the 1983 Act and the Arbitration Act, in the light of Section 2(4) of the Arbitration Act, this Court held that although there was an arbitration clause, the 1983 Act would apply.
The Supreme Court observed that if an award is already made by the Arbitrator and if the objection to the jurisdiction of the Arbitrator was not raised at an appropriate stage, the award may not be annulled only on that ground. The learned counsel submitted that the respondents did not challenge the order passed by the High Court under Section 11(6) of the Arbitration Act.
Decision of the Judgment
The Court held that If the appellant has withdrawn the amount paid as per the award, the same shall be deposited by the appellant with the High Court within two months from today. The amount shall be invested by the High Court in a fixed deposit with any nationalized bank till the disposal of the restored appeal.
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