ORDER

The petitioner, M/s Power Mech Projects Ltd., has invoked the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India seeking quashment of Complaint No.414/2022 and all consequential proceedings initiated by the Economic Offences Wing, Bhopal (EOW), on the ground that the dispute between the petitioner and respondent No.2– Mapaex Minerals is purely civil and contractual in nature and has already been subjected to adjudication through arbitration culminating in a reasoned Arbitral Award dated 06.07.2025.

It may also be noted that the matter was initially heard at length and reserved for orders on 06.08.2026 after hearing learned counsel for the petitioner as well as learned counsel appearing for respondent No.1/EOW. Subsequently, on 10.08.2026, although the matter was not listed, learned counsel appearing for respondent No.2 brought to the notice of the Court that respondent No.2 had not been served and, therefore, had not been heard. In view of the principles of natural justice, the matter was thereafter released from the stage of orders and respondent No.2 was afforded an opportunity of hearing, followed by an opportunity to the petitioner to make submissions in rebuttal. Accordingly, the matter has been considered afresh after hearing all the parties and taking into account the pleadings and documents placed on record by them.

The facts, in brief, are that the Madhya Pradesh State Mining Corporation floated a tender on 07.10.2019 pertaining to sand extraction projects situated in the districts of Narmadapuram, Sehore and Bhind. Pursuant thereto, a Memorandum of Understanding dated 25.01.2020 was executed between the petitioner, respondent No.2–Mapaex Minerals and M/s Anshika Builders for sharing financial obligations arising out of the tender. According to the petitioner, under the arrangement the petitioner was to bear 60% of the financial commitment while the remaining amount was to be contributed by the other participants. Subsequently, disputes arose regarding performance of obligations under the MoU and connected agreements. Respondent No.2 invoked the arbitration clause by notice dated 21.09.2022. As no consensus could be reached regarding appointment of an arbitrator, proceedings under Section 11(6) of the Arbitration and Conciliation Act, 1996 were initiated before this Court in A.C. No.110/2022. By order dated 21.04.2023 (Annexure P/1), this Court appointed Hon'ble Shri Justice Alok Verma (Retd.) as Sole Arbitrator.

The record reveals that both parties participated in the arbitral proceedings and led evidence in support of their respective claims and counter-claims. The Sole Arbitrator, after considering the pleadings, documents and evidence, passed a detailed Arbitral Award dated 06.07.2025 (Annexure P/2) whereby both the claims preferred by Mapaex Minerals and the counter-claims raised by the petitioner were dismissed. It is not in dispute that respondent No.2 has challenged the said award by filing proceedings under Section 34 of the Arbitration and Conciliation Act before the competent Commercial Court.

The grievance of the petitioner is that after the Arbitral Award was rendered and while challenge thereto remains pending, respondent No.2 lodged a complaint before the EOW alleging financial irregularities and fraud. Pursuant thereto, notices dated 01.09.2025, 02.09.2025, 11.09.2025, 11.02.2026 and 27.02.2026 (collectively Annexure P/3) were issued calling upon the petitioner to furnish various contractual and financial documents. The petitioner submitted a detailed representation (Annexure P/4) contending that the allegations are contractual in nature and have already been adjudicated in arbitration. However, according to the petitioner, the inquiry is continued, compelling the petitioner to approach this Court.

Learned counsel appearing for the petitioner submitted that the entire controversy arises out of commercial arrangements embodied in the MoU