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2007 Supreme(MP) 1023

A.M.SAPRE, K.PATNAIK, S.S.JHA
Shankarnarayana Construction Company – Appellant
Versus
State of M. P. – Respondent


Advocates:
S.S. Naganand and Y.R. Rao for petitioner;
Y.K. Shukla, Deputy Advocate General for State.

ORDER

Patnaik, C.J. -- 1. The petitioner entered into a works contract with the respondents for construction of a central spillway of Rajeev Sagar Tank Project in Guna District of Madhya Pradesh on 19.2.1999. Clause 4.3.29.2 of the conditions of Contract provides that any claim valued at Rs.50,000/ or more will be considered by the Superintending Engineer (for short "the S.E.") of the Circle and any party dissatisfied with the final decision of the S.E. may refer the dispute to the Tribunal constituted under the Madhya Pradesh Madhastham Adhikaran Adhiniyam, 1983 (for short "the 1983 Adhiniyam"). The petitioner made a claim of Rs.21.81 crores against the State of Madhya Pradesh in its letter dated 7.2.2002. The S.E. rejected the claim and this was communicated to the petitioner by the Executive Engineer by letter dated 6.6.2002. Instead of referring the dispute to the Tribunal constituted under the 1983 Adhiniyam, the petitioner filed the M.C.C. under section 11(6) of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act") contending that the 1983 Adhiniyam being repugnant to the provisions of the Act of 1996 is void by operation of Article 254 of the Constitution and













































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