SUPREME COURT OF INDIA
Adarsh Kumar Goel, Rohinton Fali Nariman, JJ.
Madhya Pradesh Rural Road Development Authority and Anr. – Appellant(s)
Versus
Backbone Enterprises Limited and Anr. – Respondent(s)
Civil Appeal No. (s). 4012 of 2018 [Arising out of SLP (C) No. 26350 of 2011]
With
Madhya Pradesh Rural Road Development Authority and Anr. – Appellant(s)
Versus
M/s. Makhija Construction Co. – Respondent(s)
Civil Appeal No. (s). 4013 of 2018 [Arising out of SLP(C) No. 29622 of 2011]
And
Madhya Pradesh Rural Road Development Authority and Anr. – Appellant(s)
Versus
Backbone Enterprises Limited and Anr. – Respondent(s)
Civil Appeal No. (S). 4014 of 2018 [Arising out of SLP (C) No. 26605 of 2011]
Decided on : 18-04-2018
Jurisdiction - Arbitration - Interpretation of Statute
Fact of the Case:
The court held that the jurisdiction to deal with the dispute is vested with the M.P. Arbitration Tribunal under the M.P. Madhyastham Adhikaran Adhiniyam, 1983, and set aside the direction in the impugned order under Section 11 of the Arbitration and Conciliation Act, 1996.
Finding of the Court:
The court granted leave and directed the parties to appear before the M.P. Arbitration Tribunal for further proceedings, allowing the respondent to seek remedy before the statutory Tribunal in accordance with the law.
Issues: Interpretation of jurisdiction in arbitration dispute
Ratio Decidendi: The court interpreted the relevant statutes and overruled the judgment in Va Tech Escher Wyass Flovel Ltd. v. MPSE Board, (2011) 13 SCC 261, to establish the jurisdiction of the M.P. Arbitration Tribunal under the M.P. Madhyastham Adhikaran Adhiniyam, 1983.
Final Decision: The direction in the impugned order under Section 11 of the Arbitration and Conciliation Act, 1996 was set aside, and the appeals were disposed of with the parties directed to appear before the M.P. Arbitration Tribunal for further proceedings.
ORDER
1. Delay condoned. Leave granted.
2. In view of judgment of this Court in Va Tech Escher Wyass Flovel Ltd. v. MPSE Board, (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 9th July, 2018.
The appellant may serve a copy of this order on the respondents.
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