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Supreme Court of India

M/S ESSEL INFRA PROJECTS LTD. THROUGH ITS AUTHORIZED REPRESENTATIVEversusSTATE OF MADHYA PRADESH ACTING THROUGH ITS DIRECTOR

Citation
2018 INSC 368
Decided
19 April 2018
Disposal
Disposed off

Holding

The Court held that, although not mandatory, the State must monitor and strive to dispose of proceedings under the Madhya Pradesh Madhyastham Adhikaran Act within a reasonable period of one to two years, with appropriate judicial oversight.

Summary

M/s Essel Infra Projects Ltd. appealed against the State of Madhya Pradesh seeking directions for speedy disposal of proceedings under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983, alleging that tribunal cases were taking up to five years. The Supreme Court examined the object of the legislation, which is to provide a swift dispute‑resolution mechanism, and held that a reasonable time for disposal is one to two years. It directed the State to monitor timeliness, set up sufficient benches, and require the Tribunal Chairman to report any shortage of benches. The Court also empowered parties to approach the Chief Justice of the High Court if timelines are not met and stipulated that revision petitions should be disposed of within two years. While the timelines are not mandatory, they must be kept in mind, and statutory amendments may be considered if they cannot be achieved. The appeal was disposed of with these directions.

Issues considered

  • Whether the State is required to monitor and ensure timely disposal of proceedings under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983.
  • What constitutes a reasonable time for disposal of such arbitration proceedings.
  • Whether the Supreme Court can prescribe timelines and direct the involvement of the Chief Justice in case of non‑compliance.
  • Whether revision petitions under the Act must be disposed of within a specific period.

Legislation cited

Subjects

timelinessarbitrationMadhyastham Adhikaranspeedy dispute resolutiontribunaljudicial oversightrevision petitionstatutory interpretation

Judgment

                         [2018] 4 S.C.R. 265                              265


        M/S ESSEL INFRA PROJECTS LTD. THROUGH ITS                         A
             AUTHORIZED REPRESENTATIVE
                                  v.
   STATE OF MADHYA PRADESH ACTING THROUGH ITS
                    DIRECTOR
                                                                          B
                   (Civil Appeal No. 4250 of 2018)
                           APRIL 19, 2018
    [ADARSH KUMAR GOEL AND R. F. NARIMAN, JJ.]
      Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983:               C
      Proceedings under – Time bound disposal of – Held: Since
the object of the legislation is to provide speedy dispute resolution
mechanism, State is required to monitor timeliness of the proceedings
– One or two years may be taken as reasonable time for the purpose
– Though this timeliness is not mandatory, but the same must be           D
kept in mind by all concerned and attention of Chief Justice of
High Court must be drawn if such timeliness is not followed – The
Chief Justice may take steps as may be possible in the matter – In
case it is found that timeliness as contemplated cannot be achieved,
statutory amendments be considered so as to provide remedies at
any other appropriate forum – Appeal disposed of.                         E
      Krishnakant Tamarakar v. State of Madhya Pradesh
      2018 (6) SCALE 156 – referred to.
                        Case Law Reference
      2018 (6) SCALE 156        referred to              Para 1           F
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4250
of 2018.
       From the Judgment and Order dated 05.05.2017 of the High Court
of Judicature of Madhya Pradesh at Jabalpur in Arbitration Petition No.
27 of 2013.                                                               G

      Parag Tripathi, Neeraj Kishan Kaul, Sr. Advs., Prabhat Kumar,
Sridhar Potaraju, Sudhir Mishra, Ms. Petal Chandok, Prabhat Kumar,
Ms. Sindoora VNL, Ms. Ankita Sharma, Rishabh, Udai Khanna, Rishabh
Kapur, Ms. Anusuya Salwan, Vikas Sood, Harsh Parashar, Bhuvan
                                                                          H
                                 265
266             SUPREME COURT REPORTS                              [2018] 4 S.C.R.


A     Mishra, Divyanshu Kumar Srivastava, Viven Sibal, Vivekananda
      Bommineni, Akash Lamba, Aman Pandey, Advs. for the Appellant.
            Purushuindra Kaurav, Mishra Saurabh, B.N. Dubey, Ms. Devika
      Gulati, Ms. Anuradha Mishra, Ms. Swarupama Chaturvedi, K. Krishna
      Kumar, Advs. for the Respondent.
B            The following Order of the Court was passed:
                                          ORDER
             1. We have heard learned counsel for the parties. Leave granted
      only to consider whether any direction is required for timeliness in disposal
C     of proceedings under the M.P. Madhyastham Adhikaran Adhiniyam, 1983
      (M.P. Act, 1983).
             2. Sh. Parag Tripathi, learned senior counsel for the appellant
      submitted that as at present the Tribunal proceedings under the M.P.
      Act, 1983 take upto five years and sometime even more. Learned counsel
D     for the State does not dispute that it is so happening in some cases.
             3. Having regard to the object of the legislation which is to provide
      speedy dispute resolution mechanism, the State must monitor timeliness
      so that arbitration proceedings do not take unduly long time. One to two
      years may, in our view, be taken as reasonable time for the purpose.
E            4. Having regard to the realistic assessment which may be made
      from time to time, such number of Benches may be set up as may
      effectuate this object. The Chairman of the Tribunal must also ensure
      that no unreasonable delay takes place. As and when the Chairman
      thinks that there is dearth of Benches, the Chairman must communicate
      the same to the State Government and the State Government must
F
      forthwith take a call thereon. If it is found that in spite of these directions,
      the speedy disposal of proceedings is not taking place, it will be open to
      either parties to move the Chief Justice of High Court who may look into
      the matter and issue such directions as may be considered necessary in
      this regard.
G           5. We may also mention that decision at the original level is not
      enough if proceedings are thereafter held up in revision proceedings
      before the High Court. Such revision petition must be disposed of
      expeditiously but not beyond two years.

H
 M/S. ESSEL INFRA PROJECTS LTD. THR. ITS AUTH. REP. v.                        267
        STATE OF M. P. ACTING THR. ITS DIRECTOR

       6. Though the above timelines are not mandatory, same must be          A
kept in mind by all concerned and attention of Chief Justice of the High
Court must be drawn if such timelines are not followed so that the Chief
Justice may take such steps as may be possible in the matter. In case it
is found that timelines as contemplated cannot be achieved, statutory
amendments be considered so as to provide remedies at any other
                                                                              B
appropriate forum. In this connection reference may be made to the
judgment of this Court dated 28.03.2018 in Criminal Appeal No.470 of
2018 titled “Krishnakant Tamrakar Vs. State of Madhya Pradesh”.
       7. The appeal is disposed of with the above directions.
                                                                              C
Kalpana K. Tripathy                                     Appeal disposed of.




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