IN THE HIGH COURT OF MADHYA PRADESH, AT JABALPUR BEFORE (HON’BLE SHRI JUSTICE VIJAY KUMAR SHUKLA)

ON THE 23^rd OF NOVEMBER, 2022 Arbitration Case No. 50/2021 Between:-

M/S MBL HIGHWAY DEVELOPMENT COMPANY LDT. THROUGH ITS AUTHORIZED SIGNATORY SHRI D.S. NAYAL, S/O SHRI RANJEET SINGH NAYAL AGED ABOUT 45 YEARS, HAVING ITS REGISTERED OFFICE AT BAANI CORPORATE ONE TOWER, SUITE NO. 303, 3RD FLOOR, PLOT NO. 5, DISTRICT COMMERCIAL CENTRE, JASOLA, NEW DELHI (DELHI) 110025 …..APPLICANT (BY SHRI NAMAN NAGRATH, SENIOR ADVOCATE ASSISTED BY SHRI JUBIN PRASAD - ADVOCATE)

AND

1. MADHYA PRADESH ROAD DEVELOPMENT CORPORATION THROUGH ITS MANAGING DIRECTOR, HAVING ITS OFFICE AT 45-A, ARERA HILLS, BHOPAL (M.P.)

2. PUNJAB NATIONAL BANK (INTERNATIONAL) LTD. THROUGH PUNJAB NATIONAL BANK NOIDA, HAVING ITS OFFICE AT BS-152, SECTOR 70, NOIDA U.P.

…..RESPONDENT (SHRI ADITYA KHANDEKAR – RESPONDENT NO.1/ MPRDC)

(SHRI MITHLESH KUMAR PANDEY AND SHRI SOMESH SHUKLA –

RESPONDENT NO.2)

Arbitration Case No.54/2021 Between:-

PUNJAB NATIONAL BANK (INTERNATIONAL) LIMITED THROUGH AUTHORISED OFFICER, PRAMOD KUMAR, HAVING REGISTERED OFFICE AT 1 MOORGATE, LONDON EC2R6JH EMAIL-ID: help@pnbint.com …..APPLICANT (BY SHRI MITHLESH KUMAR PANDEY AND SHRI SOMESH SHUKLA -ADVOCATE)

AND

1. MADHYA PRADESH ROAD DEVELOPMENT CORPORATION LTD. THROUGH ITS MANAGING DIRECTOR, HAVING ITS OFFICE AT 45-A, ARERA HILLS, BHOPAL, M.P. - 462011.

2. M/S MBL HIGHWAY DEVELOPMENT COMPANY LIMITED THROUGH ITS AUTHORISED SIGNATORY/CMD, SHRI A.K LAKHOTIA HAVING REGISTERED OFFICE AT: BAANI CORPORATE 1, TOWER, SUITE NO. 303, 3RD FLOOR, PLOT NO. 5, DISTRICT COMMERCIAL CENTRE, JASOLA, NEW DELHI (DELHI) – 110076.

…..RESPONDENT (SHRI ADITYA KHANDEKAR – RESPONDENT NO.1/ MPRDC)

(SHRI NAMAN NAGRATH, SENIOR ADVOCATE ASSISTED BY SHRI JUBIN PRASAD – RESPONDENT NO.2)

……………………………………………………………………….

This petition coming on for final hearing this day, the court passed the following:

O R D E R

Both the arbitration cases are filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred in short as “Act”) for appointment of arbitrator to resolve the disputes between the parties.

Regard being had to the similitudes of facts, grounds and issues involved in both the cases, they are being heard and decided analogously.

Facts of Arbitration Case No.50/2021:-

1. The applicant M/s MBL Highway Development Company Limited (hereinafter referred as “Company”) entered into a concession agreement with the non-applicant No.1 M.P. Road Development Corporation (referred in short as “MPRDC”) for design, build, finance, operate and transfer of the Seoni – Katangi - Bonkatta. An Escrow agreement was signed by the applicant, the respondent No.2 Punjab National Bank (referred in short as “Bank”) and the respondent No.1 on 21.02.2012. By this agreement, the respondent No.2 Bank, became the Escrow agent. A substitution agreement was entered into by the respondent No.1/MPRDC, the applicant M/s MBL Highway Development Company Limited and respondent No.2 Punjab National Bank. Under the terms of the said agreement and concession agreement, right to substitute the concessionaire was given to the respondent No.2/Bank in case of default.

2. It is pleaded that without giving any show-cause notice or any notice to the respondent No.2/Bank in terms of substitution agreement, the respondent No.1/MPRDC terminated the concession agreement. On 24.03.2021, the respondent No.2/

Bank invoked arbitration vide its notice invoking arbitration by issuing notice to the applicant company and respondent No.1/MPRDC as per Clause 8 of the substitution agreement and Clause 10 of the escrow account agreement and had appointed its nominee arbitrator. On 01.04.2021, in furtherance to the notice invoking arbitration dated 24.03.2021, the applicant M/s MBL Highway Development Company Limited had also invoked arbitration in respect of its claims against the Bank and MPRDC and nominated its arbitrator. However, the respondent No.1/MPRDC on 16.04.2021 refused to nominate its