2012 Supreme(MP) 56

2012(2) JLJ 329
(SUPREME COURT)
A.K. Ganguly and G.S. Misra, JJ.
M.P. Rural Road Development Authority v. M/s. L.G. Chaudhary Engineers and Construction
Civil Appeal No.974 of 2012 : against the judgment and order of the High Court of M.P. in A.C. No.14 of 2010; Decided on 24.1.2012.

Headnote:Per Ganguly, J.

       (1) Arbitration and Conciliation Act, 1996 -- Ss.2(4), 2(5), 9, 11 and 46 -- M.P. Madhyastham Adhikaran Adhiniyam, 1983 -- Ss.2(a), 2(i) and 7 -- Central Act saved the provisions of State Act -- hence, no substance in argument of repugnancy -- State Act will prevail being a special Act.

       If this Court compares the provisions of the M.P. Act with A.C. Act 1996 then the Court finds that the provisions of M.P. Act are inconsistent with the provisions of A.C. Act 1996. The M.P. Act is a special law providing for statutory arbitration in the State of Madhya Pradesh even in the absence of arbitration agreement. Under the provisions of A.C. Act 1996 in the absence of an arbitration agreement, arbitration is not possible. There is also difference in the formation of arbitration Tribunal as is clear from section 2(1)(d) of A.C. Act, 1996. Again under A.C. Act, 1996, arbitral Tribunal is defined under section 2(1)(d) as a sole arbitrator or a panel of arbitrators. But under M.P. Act such a Tribunal is created under sections 3 and 4 of the Act. And under the M.P. Act dispute has a special meaning as defined under section 2(1)(d) of the Act whereas dispute has not been defined under the A.C. Act 1996. [Para 25

       Held : The M.P. Act 1983 was reserved for the assent of the President and admittedly received the same on 17.10.1983 which was published in the Madhya Pradesh Gazette Extraordinary dated 12.10.1983. Therefore, the requirement of Article 254(2) of the Constitution was satisfied. Thus, M.P. Act of 1983 prevails in the State of Madhya Pradesh. Thereafter, A.C. Act 1996 was enacted by Parliament repealing the earlier laws of arbitration of 1940. It has also been noted that A.C. Act 1996 saves the provisions of M.P. Act 1983 under sub-sections 2(4) and 2(5) thereof. Therefore, there cannot be any repugnancy. AIR 1983 SC 150, (1979)3 SCC 431 and 2008(2) JLJ 364 (SC) relied on. Civil Appeal No.3746 and 3747 of 2005 set aside.

       (2) Legal Maxims -- decision given ‘per incuriam‘ -- means decision given in ignorance of the terms of Statute -- cannot be accepted as a precedent to decide the controversy in any case. (1955)2 SCR 603, JT 1991(3) SC 268 and JT 1988(4) SC 11 relied on. [Paras 30 & 41

       Per Mishra, J.

       (3) Arbitration and Conciliation Act, 1996 -- Ss.2(4), 2(5), 9, 11 and 46 -- M.P. Madhyastham Adhikaran Adhiniyam, 1983 -- Ss.2(a), 2(i) and 7 -- works contract itself became non-existent as a consequence of its cancellation -- matter will have to be referred to an independent arbitrator under Arbitration and Conciliation Act, 1996 and not to M.P. State Arbitration Tribunal.

       However, when the works contract itself becomes non-existent as a consequence of its cancellation, the matter will have to be referred to an independent arbitrator under the Arbitration and Conciliation Act, 1996 and not to M.P. State Arbitration Tribunal.

        [Para 60

       Thus, while holding that the M.P. Act 1983 should operate in the State of M.P. in respect of certain specified types of arbitration, the appointment of an independent arbitrator by the High Court under the Arbitration and Conciliation Act, 1996 needs to be sustained since the works contract itself is not in existence by virtue of its cancellation and hence this part of the dispute could not have been referred to the M.P. State Tribunal.

       

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