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Supreme Court of India

UMRI POOPH PRATAPPUR (UPP) TOLLWAYS PVT. LTD.versusM.P. ROAD DEVELOPMENT CORPORATION AND ANOTHER

Citation
2025 INSC 907
Decided
30 July 2025
Disposal
Disposed off

Holding

Disputes arising from the concession agreement, being a works contract, fall exclusively within the jurisdiction of the Madhya Pradesh Arbitration Tribunal under the 1983 Act, rendering private arbitration under the 1996 Act non est and barred by the doctrines of election, estoppel, and constructive res judicata.

Summary

Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. entered into a 2012 concession agreement with Madhya Pradesh Road Development Corporation (MPRDC) for a state highway project. Disputes over cost overruns and delays led the appellant to first file a reference before the Madhya Pradesh Arbitration Tribunal under the 1983 Act, then simultaneously invoke Clause 44.3.1 of the agreement to commence private arbitration before the International Centre for Alternative Dispute Resolution (ICADR) under the Arbitration and Conciliation Act, 1996. The High Court quashed the ICADR proceedings, holding the 1983 Act provided exclusive jurisdiction, a decision the appellant challenged before the Supreme Court. The Supreme Court affirmed that the concession agreement is a "works contract" falling within the 1983 Act, rendering private arbitration non est and barred by the doctrine of election, estoppel, and constructive res judicata. It also noted the appellant’s withdrawal of the reference without permission barred re‑filing, but, in the interest of justice, allowed the appellant to seek restoration of the reference before the Madhya Pradesh Arbitration Tribunal. The appeal was disposed of with directions to file the restoration application.

Issues considered

  • The nature of the concession agreement: whether it qualifies as a "works contract" under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983.
  • Whether the Arbitration and Conciliation Act, 1996 can be invoked for disputes arising from a works contract that is subject to a special statutory tribunal.
  • The effect of the appellant’s parallel initiation of private arbitration under Clause 44.3.1 while a reference was pending before the Madhya Pradesh Arbitration Tribunal.
  • The applicability of the doctrine of election, estoppel, and constructive res judicata to the appellant’s conduct.
  • The legal consequences of withdrawing a reference without obtaining liberty to re‑agitate under Rule 53(3)(b) of the Madhya Pradesh Madhyastham Adhikaran Regulations, 1985.

Legislation cited

Headnote

Issue for Consideration The core issue in the present matter revolves around determining the appropriate forum for the adjudication of disputes arising out of the Concession Agreement dated 05.01.2012 entered into between the appellant and Madhyastham Adhikaran Adhiniyam, 1983 – s.7 – Arbitration and Conciliation Act, 1996 – The appellant and respondent no.1-Madhya Pradesh Road Development Corporation entered into a Concession Agreement for the augmentation of the road – Disputes arose between the parties

Subjects

Concession AgreementWorks contractExclusive jurisdictionPrivate arbitrationDoctrine of electionEstoppelConstructive res judicataForum shoppingWithdrawal of referenceRule 53(3)(b)Madhya Pradesh Arbitration Tribunal

Judgment

                 [2025] 7 S.C.R. 1768 : 2025 INSC 907

            Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd.
                                v.
           M.P. Road Development Corporation and Another
                       (Civil Appeal No. 9920 of 2025)
                                  30 July 2025
               [J.B. Pardiwala and R. Mahadevan,* JJ.]


                            Issue for Consideration
       The core issue in the present matter revolves around determining
       the appropriate forum for the adjudication of disputes arising out of
       the Concession Agreement dated 05.01.2012 entered into between
       the appellant and respondent no.1.

                                   Headnotes†
       Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 –
       s.7 – Arbitration and Conciliation Act, 1996 – The appellant
       and respondent no.1-Madhya Pradesh Road Development
       Corporation entered into a Concession Agreement for the
       augmentation of the road – Disputes arose between the
       parties – The appellant raised claims before the Independent
       Engineer for amicable resolution and compensation, which
       were mostly rejected – With no resolution forthcoming,
       appellant initiated proceedings before the Madhya Pradesh
       Arbitration Tribunal – Thereafter, the appellant invoked
       Cl.44.3.1 of the Concession Agreement and approached
       the International Centre for Alternative Dispute Resolution-
       respondent no.2 – Respondent no. 1 raised objections – ICADR
       by order dated 02.06.2022 appointed arbitrators – On the other
       side, the Arbitral Tribunal issued notice for preliminary hearing,
       by order dated 07.06.2022 – Subsequently, the appellant filed
       an application before Madhya Pradesh Arbitration Tribunal
       for seeking withdrawal, which was allowed – Aggrieved by
       the orders dated 02.06.2022 and 07.06.2022 of the ICADR and
       the Arbitral Tribunal, respondent no.1 filed writ petition which
       was allowed and orders dated 02.06.2022 and 07.06.2022 were
       quashed:


* Author
[2025] 7 S.C.R.                                                             1769

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

     Held: The present Concession Agreement pertains to the
     construction of a State Highway situated entirely within the State
     and was awarded by respondent no.1, a State-controlled entity,
     the agreement clearly qualifies as a “works contract” u/s.2(1)(i)
     of the 1983 Act – Consequently, the dispute arising therefrom
     falls within the exclusive jurisdiction of the Madhya Pradesh
     Arbitration Tribunal – The Arbitration and Conciliation Act, 1996
     stands excluded by operation of law in such matters – The private
     arbitration proceedings initiated by the appellant are therefore, non
     est in law, and the proper forum for adjudication is the Madhya
     Pradesh Arbitration Tribunal established under the 1983 Act – It
     is not in dispute that the appellant had initiated Reference Case
     before the Madhya Pradesh Arbitration Tribunal and had obtained
     issuance of notice – While the said reference was pending, the
     appellant simultaneously invoked arbitration under Clause 44.3.1
     of the Concession Agreement and initiated private arbitration
     proceedings before the ICADR (Respondent No. 2) under the 1996
     Act – This parallel invocation of remedies is impermissible in law
     and squarely hit by the doctrine of election and estoppel – A party
     cannot pursue two mutually inconsistent remedies under different
     legal regimes arising from the same cause of action – Clause
     44.3.1 of the Concession Agreement to the extent it purports to
     permit private arbitration, cannot override the statutory mandate of
     the 1983 Act – Accordingly, the attempt of the appellant to invoke
     Clause 44.3.1 of the Concession Agreement and re-agitate the
     issue of private arbitration-already settled in Viva Highways and
     affirmed by this Court-is barred by the doctrine of constructive
     res judicata and amounts to an abuse of the process of law –
     Additionally, the appellant’s conduct in withdrawing the reference
     petition before the Madhya Pradesh Arbitration Tribunal, without
     seeking liberty to re-agitate the claims, and simultaneously
     initiating proceedings under the 1996 Act, constitutes forum
     shopping – This conduct, aimed at circumventing the statutory
     mechanism and reviving abandoned claims, is tainted with mala
     fides – In terms of the statutory mandate under Rule 53(3)(b) of
     1985 Regulations, once a reference is withdrawn without obtaining
     liberty to re-agitate the same, the appellant stands precluded
     from initiating a fresh reference on the same subject matter –
     This substantive bar also applies to any attempt to pursue the
     same claims before alternative fora – Nonetheless, considering
1770                                                        [2025] 7 S.C.R.

                        Supreme Court Reports


    the nature of the dispute and in the interests of justice, appellant
    directed to seek revival of Reference Petition before the Madhya
    Pradesh Arbitration Tribunal. [Paras 11.9, 11.10, 12, 12.1, 13.1,
    14, 16, 17, 17.1]

                             Case Law Cited
    Federal Bank Ltd. v. Sagar Thomas [2003] Supp. 4 SCR 121 :
    (2003) 10 SCC 733; Binny Ltd v. Sadasivan [2005] Supp. 2 SCR
    421 : (2005) 6 SCC 657; Gangotri Enterprises Ltd v. Madhya
    Pradesh Road Development Corporation [2018] 4 SCR 260 :
    (2018) 16 SCC 296; Madhya Pradesh Rural Road Development
    Corporation Ltd v. L.G. Chaudhary Engineers and Contracts
    [2012] 2 SCR 162 : (2018) 10 SCC 826; Gayathri Project Ltd v.
    M.P. Road Development Corporation Ltd. [2018] 4 SCR 260 :
    2025 SCC OnLine SC 1136; Booz Allen and Hamilton Inc v.
    SBI Home Finance Ltd. [2011] 7 SCR 310 : (2011) 5 SCC
    532 – relied on.
    S.Shobha v. Muthoot Finance Ltd. [2025] 1 SCR 1147 : SLP(C)
    Nos. 2625-2627 of 2025; Jagmittar Sain Bhagat v. Director,
    Health Services, Haryana and Others [2013] 8 SCR 77 : (2013)
    10 SCC 136; Kanwar Singh Saini v. High Court of Delhi [2011]
    15 SCR 972 : (2012) 4 SCC 307; State of Chhattisgarh v. M/s.
    KMC Construction [2018] 4 SCR 270 : (2018) 10 SCC 839;
    ARSS Damoh - Hirapur Tolls (P) Ltd. v. M.P. Road Development
    Corporation, 2018 SCC OnLine SC 3899; Madhya Pradesh Rural
    Road Development Authority v. Backbone Enterprises Limited
    [2018] 4 SCR 255 : (2018) 15 SCC 660; Deep Industries Ltd v.
    Oil and Natural Gas Corporation Ltd. [2019] 17 SCR 995 : (2020)
    15 SCC 706 – referred to.
    Viva Highways Ltd v. Madhya Pradesh Road Development
    Corporation Ltd., 2017 SCC OnLine MP 1448 – referred to.

                               List of Acts
    Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983;
    Constitution of India; Arbitration and Conciliation Act, 1996; Civil
    Procedure Code, 1908; Madhya Pradesh Highways Act, 2004;
    Arbitration Act, 1940; Limitation Act, 1963; Madhya Pradesh
    Madhyastham Adhikaran Regulations, 1985.
[2025] 7 S.C.R.                                                            1771

         Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
            M.P. Road Development Corporation and Another

                                         List of Keywords
      Concession Agreement; Determining the appropriate forum for the
      adjudication of disputes; Independent Engineer; Amicable resolution
      and compensation; Withdrawal; State-controlled entity; Works
      contract; Exclusive jurisdiction; Private arbitration proceedings;
      Doctrine of election and estoppels; Mutually inconsistent remedies;
      Same cause of action; Private arbitration; Doctrine of constructive
      res judicata; Abuse of the process of law; Forum shopping; Liberty
      to re-agitate; Fresh reference on the same subject matter; Proper
      forum for adjudication.

                                        Case Arising From
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9920 of 2025
      From the Judgment and Order dated 09.09.2024 of the High Court
      of Madhya Pradesh Principal Seat at Jabalpur in WP No. 14569
      of 2022

                                   Appearances for Parties

      Advs. for the Appellant:
      Siddharth Dave, Sr. Adv., Ms. Sadapurna Mukherjee, Saurabh
      Kumar, Manvi Sharma, Rajat Mittal.
      Advs. for the Respondents:
      Tushar Mehta, Solicitor General, Siddharth Sharma, Bhuvan
      Kapoor, Ms. Rajeshwari Shankar, Ms. Ishika Chauhan.

                       Judgment / Order of the Supreme Court

                                              Judgment

      R. Mahadevan, J.

      Leave granted.
2.    This appeal has been preferred against the final judgment and
      order dated 09.09.2024 passed by the High Court of Madhya
      Pradesh at Jabalpur1 in Writ Petition (Civil) No. 14569 of 2022


1    Hereinafter referred to as “the High Court”
1772                                                         [2025] 7 S.C.R.

                           Supreme Court Reports


     filed by Respondent No. 1 – Madhya Pradesh Road Development
     Corporation. By the impugned judgment, the High Court allowed
     the writ petition and quashed the orders dated 02.06.2022 and
     07.06.2022 passed by the International Centre for Alternative
     Dispute Resolution2 – Respondent No.2 and the Arbitral Tribunal,
     respectively. For ease of reference, the orders impugned in the writ
     petition, are extracted below:

     Order dated 02.06.2022 passed by the ICADR
             “…
             The ICADR has made thorough examination of all the
             points of the Claimant and Respondent including the
             aforesaid nine attachments with email dated 24.05.2022
             and due deliberation and consideration of all the points
             raised by both the Claimant and Respondent particularly
             Arbitration Agreement, the judgement in Writ Petition
             no. 11783/2021 dt.03.09.2021 and Orders sheets of
             Madhyastham Adhikaran at Bhopal and it has come to
             the following conclusions:
             1. ICADR is the proper forum for the arbitration of disputes
             arising out of execution of Concession Agreement dated
             05.01.2012 between M/s. Umri Pooph Pratappur Tollway
             Private Limited and Madhya Pradesh Road Development
             Corporation Ltd. and the same can be ascertained from
             Arbitration Agreement incorporated in Article 44.3.1 and
             44.3.2.
             2. The Judgement in Writ Petition nо. 11783/2021
             dt.03.09.2021 gives clear finding that ICADR is the proper
             forum for Arbitration of dispute arising from the Concession
             agreement dated 05.01.2012.
             3. In view of and from the orders sheets of Madhyastham
             Adhikaran at Bhopal, it is ascertained that the Madhyastham
             Adhikaran at Bhopal has not entered upon reference of the



2   For short, “ICADR”
[2025] 7 S.C.R.                                                             1773

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

           arbitration and therefore not in seisin of the aforementioned
           arbitrable disputes.
           Therefore, in view of Rule 5(2) of the ICADR Arbitration
           Rules, 1996, inter alia, provides that where a party
           fails to appoint an arbitrator within 30 days from the
           receipt of a request to do so from the other party, the
           appointment shall be made upon request of the party,
           by ICADR. However, in view of Reply of MPRDCL
           vide letter No. 2941/83/BOT/MPRDC Bhopal dated
           13.05.2022 to Arbitration Notice dated 06.05.2022 of
           the Claimant whereby the Respondent has declined to
           nominate their Arbitrator, hence, ICADR need not wait
           for expiry of 30 days.
           Since the Respondent has failed to appoint their
           arbitrator in terms of clause 44.3.1 of the Agreement,
           now, therefore, I, R.K. Rathore, Secretary General of the
           International Centre for Alternative Dispute Resolution
           (ICADR), in exercise of the powers vested in me under
           Rule 5(2) read with Rule 35(3) of ICADR Arbitration Rules,
           1996, do hereby appoint the following arbitrator on the
           behalf of Respondent:
           Shri Jagdish Prasad Shukla, IRSE (Retd.)
           Former Principal Engineer/Northern Railway Chief
           Managing Director/
           Rail Vikas Nigam Ltd. &
           Member Administration/Central Administrative Tribunal
           Add: 501, Ridgewood, Omaxe Forest Sector-92,
           Noida.
           Cell No. 9958998686
           E-mail: jpshukla46@gmail.com
           The two appointed arbitrators will select the third Arbitrator,
           i.e. Presiding Arbitrator, as provided in clause 44.3.2 of
           the above mentioned Agreement.”
1774                                                      [2025] 7 S.C.R.

                       Supreme Court Reports


    Order dated 07.06.2022 passed by the Arbitral Tribunal
        “…
                      Notice for preliminary hearing
        1) The Concessionaire/ Claimant has appointed Shri
        Kamlesh Kumar as Arbitrator on their behalf. The ICADR on
        behalf of Madhya Pradesh Road Development Corporation
        Limited has nominated Shri J. P. Shukla as Arbitrator for
        MPRDC Ltd.
        2) The above said nominee Arbitrators of the parties by
        mutual consent have appointed me the Presiding Arbitrator
        to adjudicate the matter in dispute relating to the above-
        mentioned subject vide email date 05.06.2022. I have
        accepted to act as Presiding Arbitrator in the above referred
        dispute on 05.06.2022 and the same was communicated
        to all concerned by email.
        3) In pursuance there off, the parties to the dispute are
        hereby notified that Preliminary hearing of the Arbitral
        Tribunal will be held on 18.06.2022 (11.00 AM) through
        video conferencing Wherein timeline for submission of the
        Statement of Claims (SOC) and Statement of Defense
        (SOD) and the procedure for conducting the Arbitration
        will be discussed and decided. The claimant shall arrange
        to send meeting link to all concerned for the video
        conferencing well in advance.
        4) The Parties to dispute may kindly note that I have received
        the proposal of my appointment as Presiding Arbitrator on
        05.06.2022 and on same day i.e., on 05.06.2022 accepted
        to act as Presiding Arbitrator. Therefore, the period of
        6 months for filing the statement of claims (SOC) and
        statement of defense (SOD) as specified in Sub Section
        4 of Section 23 of Arbitration and Conciliation Act, 1996
        (Amendment 2019) shall be reckoned from 05.06.2022
        and such period end on 04.12.2022.
        5) In the meantime, the Respondent is directed to file
        a certified copy of Agreement between the Respondent
[2025] 7 S.C.R.                                                        1775

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

           and Claimant to all the Tribunal Members with a copy to
           the Claimant.
           6) My Disclosure under section 12(1 b) as schedule VI
           of the Arbitration and Conciliation Act 1996 (Amendment
           2019) is enclosed for reference of parties to the dispute.
           ….”
3.   The brief facts necessary for adjudication of the present appeal are
     as follows:
     3.1. The appellant and Respondent No.1 entered into a Concession
          Agreement dated 05.01.2012 for the development of the Umari –
          Pooph – Pratappur Road on a Build, Operate and Transfer
          (BOT – Toll + Annuity) basis. The total cost of the project was
          Rs. 73.68 crores for the augmentation of the existing road
          from T-Junction of SH-45 at Umari Village to 43.775 km on the
          Umri – Pooph – Pratappur section of Major District Road (MDR)
          in the State of Madhya Pradesh, as stipulated in Clause 48.1
          of the Concession Agreement. The implementation period was
          fixed at 24 months from the appointed date.
     3.2. In accordance with Article 9.1.1 and Schedule F of the
          Concession Agreement, the appellant furnished a performance
          security of Rs. 3.68 crores in the form of an irrevocable and
          unconditional bank guarantee, vide Bank Guarantee No.
          00494121PG000028 dated 03.07.2012 issued by Allahabad
          Bank. An Escrow Agreement was also executed on 20.06.2012
          among the appellant, Respondent No.1 and Allahabad
          Bank.
     3.3. M/s. S&P Infrastructure Developers Private Limited and M/s.
          BLA Infrastructure Private Limited, by Deeds of Guarantee
          dated 20.06.2012 and 15.05.2012 respectively, guaranteed
          the performance of the appellant under the Common Loan
          Agreement. The appellant alleged that Respondent No.1
          arbitrarily fixed the appointed date as 20.06.2012. Thereafter,
          the appellant submitted the project completion schedule, work
          programme, and designs and drawings for review by the
          Divisional Manager, who had been temporarily appointed as
          the Independent Engineer. Upon acceptance, the appellant
1776                                                         [2025] 7 S.C.R.

                                Supreme Court Reports


             mobilized men, materials, and machinery at the site and
             commenced work.
     3.4. Vide Letter No. VO/TL/2012/Gen/02 dated 27.06.2012, the
          appellant was informed that M/s. Vaidya Organisation had
          been appointed as the Independent Engineer with effect
          from 01.06.2012. The Independent Engineer did not approve
          the designs and drawings earlier submitted and directed the
          appellant not to proceed with construction until the already
          executed work was reviewed and approved. The appellant was
          further directed to submit revised designs and drawings. Despite
          objections, revised submissions were made by the appellant
          on 11.07.2012, which were eventually approved. Consequently,
          the appellant was compelled to dismantle and re-execute
          substantial portions of the work, resulting in an escalation of
          the total project cost to Rs. 99.80 crores.
     3.5. Subsequent delays and disruptions allegedly occurred due
          to breaches of contractual obligations by Respondent No.
          1. Consequently, the appellant raised 19 claims before the
          Independent Engineer invoking Article 44.2 of the Concession
          Agreement for amicable resolution and compensation. These
          claims were also submitted to the Secretary, PWD. While some
          claims were accepted during conciliation proceedings, most
          were rejected, and no payments were released to the appellant.
     3.6.      With no resolution forthcoming, the appellant initiated
               proceedings before the Madhya Pradesh Arbitration Tribunal
               by filing Reference Case No. 61 of 2018. Notice in the said
               reference was issued on 13.08.2018.
     3.7.      Thereafter, the appellant invoked Clause 44.3.1 of the
               Concession Agreement and approached the ICADR.
               Respondent No. 1 raised objections under Section 7 of
               the Madhya Pradesh Madhyastham Adhikaran Adhiniyam,
               19833. Nevertheless, the ICADR, by order dated 02.06.2022,
               proceeded to appoint arbitrators to adjudicate the disputes.
               The Arbitral Tribunal issued a notice for preliminary hearing,
               by order dated 07.06.2022.


3   For short, “the 1983 Act”
[2025] 7 S.C.R.                                                          1777

         Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
            M.P. Road Development Corporation and Another

      3.8.      Subsequently, on 24.06.2022, the appellant filed an application
                before the Madhya Pradesh Arbitration Tribunal, seeking
                withdrawal of Reference Case No.61 of 2018.
      3.9.      Aggrieved by the orders dated 02.06.2022 and 07.06.2022
                passed by the ICADR and the Arbitral Tribunal, respectively,
                Respondent No.1 filed Writ Petition No.14569 of 2022 before
                the High Court. During the pendency of the writ petition, the
                Madhya Pradesh Arbitration Tribunal allowed the appellant’s
                withdrawal application by order dated 08.02.2023.
      3.10. Ultimately, by judgment dated 09.09.2024, the High Court
            allowed the writ petition and quashed the orders dated
            02.06.2022 and 07.06.2022. Aggrieved thereby, the appellant
            has preferred the present appeal before this Court.
4.    The learned Senior Counsel for the appellant submitted that the
      writ petition filed by Respondent No. 1 before the High Court was
      not maintainable as the appellant is a private company and does
      not function as an instrumentality of the State. Reliance was placed
      on the judgment of this Court in S.Shobha v. Muthoot Finance Ltd4,
      wherein it was held that a writ petition is maintainable only against
      a body that qualifies as ‘State’ under Article 12 of the Constitution.
      Therefore, the High Court erred in entertaining the writ petition and
      passing the impugned order against the appellant.
      4.1. Reference was also made to the decisions of this Court in
           Jagmittar Sain Bhagat v. Director, Health Services, Haryana
           and others5 and Kanwar Singh Saini v. High Court of Delhi6, to
           submit that the issue of maintainability of a writ petition can be
           raised at any stage of the proceedings, and must be determined
           at the threshold.
      4.2. The learned Senior Counsel submitted that the arbitration
           proceedings were initiated by the appellant under the Arbitration
           and Conciliation Act, 1996 7, strictly in accordance with


4    SPL(C) Nos. 2625-2627 of 2025
5    (2013) 10 SCC 136
6    (2012) 4 SCC 307
7    For short, “the 1996 Act”
1778                                                        [2025] 7 S.C.R.

                              Supreme Court Reports


           Clause 44.3.1 of the Concession Agreement dated 05.01.2012,
           and not as an alternative or secondary remedy. Both parties,
           being fully aware of the existence of the Madhya Pradesh
           Arbitration Tribunal constituted under the 1983 Act, had mutually
           agreed to resolve disputes through arbitration governed by the
           1996 Act and the ICADR Rules. Accordingly, the invocation of
           the 1996 Act was not barred by the 1983 Act.
     4.3. It was further emphasized that if the parties had intended to refer
          disputes to the Tribunal under the 1983 Act, the agreement would
          have specifically provided for such reference. Whereas, Clause
          44.3.1 of the Concession Agreement mandates arbitration under
          the aegis of ICADR, New Delhi. Therefore, the jurisdiction of
          the Madhya Pradesh Arbitration Tribunal cannot override this
          binding contractual mechanism.
     4.4. The learned Senior Counsel placed reliance on paragraph 79 of
          the decision of the Madhya Pradesh High Court in Viva Highways
          Ltd v. Madhya Pradesh Road Development Corporation Ltd8,
          which held that the Madhya Pradesh Arbitration Tribunal under
          the 1983 Act has jurisdiction only over “ascertained” claims. It
          also acknowledged that “ascertained” claims have a specific
          connotation. In the present case, the appellant’s claims are, at
          best, “ascertainable”, and therefore, outside the jurisdiction of
          the Tribunal. Even assuming, without conceding, that the claims
          could be considered “ascertained”, it was incumbent upon the
          High Court or Tribunal to undertake an inquiry to classify the
          nature of the claims. However, no such determination was
          carried out in the present case.
     4.5. It was contended that the Doctrine of Election has no application
          to the present case. Firstly, the appellant invoked arbitration
          proceedings under the Concession Agreement and did not
          approach the Madhya Pradesh Arbitration Tribunal under the
          1983 Act on its own volition. Secondly, arbitration was not
          resorted to as an alternative, but as a binding and mutually
          agreed remedy under the contract.



8   2017 SCC OnLine MP 1448
[2025] 7 S.C.R.                                                            1779

         Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
            M.P. Road Development Corporation and Another

      4.6. It was further submitted that the 1996 Act is a self-contained
           and exhaustive code, based on the UNCITRAL Model Law,
           enacted with the objective of promoting speed, efficiency, and
           uniformity in arbitral proceedings. Therefore, allowing statutory
           tribunals such as the one under the 1983 Act to override the
           framework of the 1996 Act would defeat the legislative intent
           and undermines India’s aspiration to be country that can provide
           early dispute settlement mechanism for commercial disputes
           through promotion of arbitration.
      4.7. It was also submitted that the Madhya Pradesh Arbitration
           Tribunal constituted under the 1983 Act functions more akin
           to a civil Court than an Arbitral Tribunal. Section 2(d) restricts
           its jurisdiction to “ascertained” claims. Section 7(5) permits
           summary dismissal, similar to Order 37 of the Civil Procedure
           Code, 19089. Section 19 limits the revisional jurisdiction of the
           High Court to narrow grounds under Section 115 of the CPC,
           thereby excluding recourse under Section 34 of the 1996 Act.
           Section 16 mandates delivery of an award within four months
           of notice. However, in the present case, even after three and
           a half years, no effective progress has been made, highlighting
           the Tribunal’s inefficacy.
      4.8. Additionally, it was submitted that although the appellant had
           initially invoked the jurisdiction of the Tribunal under the 1983
           Act, it was compelled to withdraw the reference due to an
           inordinate delay of over four years, and because the claims were
           only “ascertainable” and not “ascertained”. Therefore, the ratio
           in Madhya Pradesh Rural Road Development Corporation Ltd
           v. L.G. Chaudhary Engineers and Contracts10 is not applicable
           to the present case.
      4.9.      Finally, it was submitted that the appellant’s claims, aggregating
                to Rs.280.1566 crores pertain to expenses incurred, damages
                under Clauses 4.2 and 10.3.4 of the Concession Agreement,
                and other project related costs. The quashing of the arbitration



9    For short, “the CPC”
10   (2018) 10 SCC 826
1780                                                       [2025] 7 S.C.R.

                        Supreme Court Reports


           proceedings by the High Court without directing adjudication
           either under the 1996 Act or the 1983 Act, has left the appellant
           without any effective legal remedy.
     4.10. In light of the above submissions and case laws, the learned
           Senior Counsel prayed that this appeal be allowed and the
           impugned order be set aside.
5.   Per contra, the learned Solicitor General of India appearing for
     Respondent No.1 submitted that there is no dispute between the
     parties regarding the nature of the Concession Agreement dated
     05.01.2012 – it constitutes a works contract. The Government of
     Madhya Pradesh enacted the Madhya Pradesh Madhyastham
     Adhikaran Adhiniyam, 1983, which provides for the establishment
     of the Madhya Pradesh Arbitration Tribunal to adjudicate disputes
     arising out of ‘works contracts’, where the State Government or a
     State Public Undertaking is a party. Section 2(1)(d) of the 1983 Act
     defines a “dispute” as a claim for ascertained or ascertainable money
     valued at Rs. 50,000 or more relating to differences arising from the
     execution or non-execution of a works contract.
     5.1. It was further submitted that Respondent No.1 is a wholly
          owned entity of the State of Madhya Pradesh, and that any
          Concession Agreement executed by it falls within the ambit
          of a ‘works contract’ under Section 2(1)(i) of the 1983 Act.
          Section 7(1) provides for mandatory reference of such disputes
          to the Madhya Pradesh Arbitration Tribunal, notwithstanding
          any arbitration clause in the agreement. Section 20 bars the
          jurisdiction of civil Courts in such matters, thereby establishing
          the Tribunal as the exclusive forum. Furthermore, Section 2(4)
          of the 1996 Act, preserves the operation of special statutory
          forums like the Madhya Pradesh Arbitration Tribunal, reinforcing
          this exclusivity.
     5.2. Reliance was placed on the judgment of a three-judge bench
          of this Court in Madhya Pradesh Rural Road Development
          Authority v. L. G. Chaudhary Engineers and Contractors
          (supra), which upheld the exclusive jurisdiction of the Madhya
          Pradesh Arbitration Tribunal for disputes arising out of works
          contracts. Similarly, in Viva Highways Ltd. (supra), a Full Bench
[2025] 7 S.C.R.                                                         1781

        Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
           M.P. Road Development Corporation and Another

             of the Madhya Pradesh High Court confirmed the Tribunal’s
             exclusive jurisdiction, and the Special Leave Petition (Civil)
             No.17070/2017 filed against the same was dismissed by this
             Court on 18.04.2018.
      5.3. The learned Solicitor General also referred to the decisions
           in State of Chhattisgarh v. M/s. KMC Construction11, ARSS
           Damoh - Hirapur Tolls (P) Ltd. v. M.P. Road Development
           Corporation12, and Madhya Pradesh Rural Road Development
           Authority v. Backbone Enterprises Limited13, where this Court
           reiterated that disputes arising out of a works contract, must
           be adjudicated exclusively by the Madhya Pradesh Arbitration
           Tribunal.
      5.4. Accordingly, the learned Solicitor General contended that
           since the Concession Agreement is a “works contract” and
           Respondent No. 1 is a State-owned corporation, any dispute
           arising therefrom falls squarely within the Tribunal’s exclusive
           jurisdiction. The appointment of a private arbitral tribunal under
           the aegis of ICADR is in direct contravention of the statutory
           framework, and the High Court rightly intervened to quash the
           arbitration proceedings under the 1996 Act.
      5.5. It was further submitted that the appellant had raised inflated
           claims amounting to Rs.280.1566 crores before the Madhya
           Pradesh Arbitration Tribunal in Reference Case No. 61 of
           2018, including claims for loss of profits and damages. These
           claims were ex facie time-barred under Section 7-B the 1983
           Act, which requires claims to be filed within one year from the
           date of communication of the decision of the final authority. The
           appellant, having failed to comply with the limitation, sought to
           circumvent the statutory bar by initiating private arbitration under
           the 1996 Act, reflecting forum shopping and lack of bona fides.
      5.6.     The learned Solicitor General pointed out that Reference Case
               No. 61 of 2018 was admitted on 06.09.2021, and Respondent


11   (2018) 10 SCC 839
12   2018 SCC OnLine SC 3899
13   (2018) 15 SCC 660
1782                                                            [2025] 7 S.C.R.

                            Supreme Court Reports


               No.1 filed its written statement on 05.11.2021, raising limitation
               as a preliminary objection. Thereafter, the appellant invoked
               Clause 44.3.1 of the Concession Agreement and issued a
               notice under Section 21 of the 1996 Act. Simultaneously, the
               appellant filed an application to withdraw the reference before
               the Tribunal on 24.06.2022, which was allowed on 08.02.2023.
      5.7.     According to the learned Solicitor General, as per Rule
               53(3)(b) of the Madhya Pradesh Madhyastham Adhikaran
               Regulations, 1985, a party that withdraws a reference without
               the permission contemplated under Rule 53(2) is barred from
               instituting a fresh reference on the same subject matter. Since
               the appellant withdrew its claim without such leave, it is now
               barred from re-agitating the same claims before any forum,
               including private arbitration. The conduct of the appellant,
               therefore, amounts to an impermissible attempt to sidestep
               statutory restrictions.
      5.8.     Reference was made to Deep Industries Ltd v. Oil and Natural
               Gas Corporation Ltd14, where this Court upheld the High
               Court’s power to exercise writ jurisdiction and quash arbitration
               proceedings coram non judice.
      5.9.     It was argued that contractual terms cannot override statutory
               mandates. If a statute designates a specific forum for
               adjudication, parties cannot, by mutual agreement, confer
               jurisdiction on an alternate forum. Clause 44.3.1 of the
               Concession Agreement, to the extent that it provides for
               private arbitration, is void ab initio in the context of a works
               contract governed by the 1983 Act. In support, reliance
               was placed on Booz Allen and Hamilton Inc v. SBI Home
               Finance Ltd15.
      5.10. It was further submitted that the term ‘ascertained money’ under
            Section 2(1)(d) includes consequential reliefs. Moreover, the
            amendment to the 1983 Act post – Viva Highways, includes
            unascertained money claims within the definition of “dispute”.


14   (2020) 15 SCC 706
15   (2011) 5 SCC 532
[2025] 7 S.C.R.                                                          1783

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

            Thus, the Tribunal has jurisdiction even over claims where
            quantification may occur during adjudication.
     5.11. The learned Solicitor General also submitted that the appellant’s
           claims totalling Rs. 280.1566 crores were clearly quantified and
           sought money relief alone. No declaratory or indeterminate
           relief was prayed for. The appellant’s conduct in attempting
           to re-agitate these very claims before the ICADR Tribunal –
           despite having withdrawn the earlier reference under Rule
           53(3)(b) – reveals its intent to circumvent the statutory bar.
           Accordingly, the Madhya Pradesh Arbitration Tribunal under
           the 1983 Act remained the appropriate and exclusive forum,
           and the High Court rightly quashed the arbitration proceedings
           initiated under the 1996 Act.
     5.12. It was further submitted that by withdrawing the reference
           without seeking liberty under Rule 53(2), the appellant has
           irrevocably abandoned its claims. The consequence under Rule
           53(3)(b) is substantive and bars re-litigation of the same subject
           matter. This bar applies irrespective of whether arbitration
           is under the 1983 Act or under the 1996 Act. Furthermore,
           even dehors the special limitation under the 1983 Act, the
           appellant’s claims are now time-barred under the general law
           of limitation, as per Section 43 of the 1996 Act. The disputes
           arose between 2013 and 2015, and the invocation of arbitration
           in 2022 and thereafter in 2025 is clearly beyond the prescribed
           three-year limitation.
     5.13. However, it was submitted that Respondent No.1 would have
           no objection, if the appellant were to file an application for recall
           of the withdrawal order and seek restoration of the Reference
           Petition before the Madhya Pradesh Arbitration Tribunal, which
           may be directed to be considered in accordance with law.
6.   We have heard the learned Senior Counsel appearing for both sides
     and also perused the materials available on record.
7.   The core issue in the present matter revolves around determining
     the appropriate forum for the adjudication of disputes arising out of
     the Concession Agreement dated 05.01.2012 entered into between
     the appellant and Respondent No.1.
1784                                                           [2025] 7 S.C.R.

                             Supreme Court Reports


8.    At the outset, the learned Senior Counsel for the appellant submitted
      that the writ petition filed by Respondent No.1 was not maintainable
      against the appellant as it was directed against a private party. It
      is well settled that the remedy under Article 226 of the Constitution
      is not confined to individuals seeking enforcement of fundamental
      rights. Even juristic persons, including State Corporations, are
      entitled to invoke the writ jurisdiction for enforcement of legal rights.
      However, when a State Corporation seeks relief against a private
      party, the maintainability of the writ petition must satisfy certain
      threshold requirements, namely, that the dispute involves a public law
      element rather than being confined to the realm of private contractual
      obligations, and that the private party is performing a public duty
      or is subject to a statutory obligation in relation to the State entity.
      8.1. In the present case, Respondent No.1 is a State - owned entity
           and the project in question pertains to the development of Umri –
           Pooph – Pratappur Road under a Concession Agreement on
           a BOT (Toll + Annuity) basis. Although the dispute emanates
           from a works contract governed by the said agreement, the
           writ petition was not filed for enforcement of any contractual
           obligation. Rather, it was filed to challenge the invocation of
           arbitration by the appellant under the Arbitration and Conciliation
           Act, 1996, despite the existence of a statutory remedy before
           the Madhya Pradesh Arbitration Tribunal constituted under the
           Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983.
           The issue, therefore, pertained to the availability and exclusivity
           of a statutory dispute resolution mechanism, and not merely
           to the adjudication of a claim on merits arising out of a private
           contractual dispute.
      8.2. In this context, reference was made to the decision in Federal
           Bank Ltd. v. Sagar Thomas16, wherein, this Court provided a
           classification of entities against whom a writ petition may be
           maintainable. The following paragraph is pertinent:
                    “18. From the decisions referred to above, the position
                    that emerges is that a writ petition under Article 226



16   (2003) 10 SCC 733
[2025] 7 S.C.R.                                                                 1785

        Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
           M.P. Road Development Corporation and Another

                    of the Constitution of India may be maintainable
                    against (i)the State (Government); (ii)an authority; (iii)
                    a statutory body; (iv)an instrumentality or agency of
                    the State; (v)a company which is financed and owned
                    by the State; (vi)a private body run substantially on
                    State funding; (vii)a private body discharging public
                    duty or positive obligation of public nature; and
                    (viii)a person or a body under liability to discharge
                    any function under any statute, to compel it to perform
                    such a statutory function.”
      8.3. This Court in Binny Ltd v. Sadasivan17, noted the distinction
           between public and private functions; and clarified the scope
           of writ jurisdiction under Article 226 in the context of private
           contractual disputes involving entities that may be performing
           public functions. The relevant paragraphs are extracted below
           for ready reference:
                    “11……. It is difficult to draw a line between public
                    functions and private functions when they are being
                    discharged by a purely private authority. A body
                    is performing a “public function” when it seeks to
                    achieve some collective benefit for the public or a
                    section of the public and is accepted by the public
                    or that section of the public as having authority to do
                    so. Bodies therefore exercise public functions when
                    they intervene or participate in social or economic
                    affairs in the public interest.”
                    “29. Thus, it can be seen that a writ of mandamus
                    or the remedy under Article 226 is pre-eminently a
                    public law remedy and is not generally available
                    as a remedy against private wrongs. It is used
                    for enforcement of various rights of the public
                    or to compel the public/statutory authorities to
                    discharge their duties and to act within their
                    bounds. It may be used to do justice when there is



17   (2005) 6 SCC 657
1786                                                  [2025] 7 S.C.R.

                 Supreme Court Reports


        wrongful exercise of power or a refusal to perform
        duties. This writ is admirably equipped to serve
        as a judicial control over administrative actions.
        This writ could also be issued against any private
        body or person, especially in view of the words used in
        Article 226 of the Constitution. However, the scope
        of mandamus is limited to enforcement of public
        duty. The scope of mandamus is determined
        by the nature of the duty to be enforced, rather
        than the identity of the authority against whom
        it is sought. If the private body is discharging a
        public function and the denial of any right is in
        connection with the public duty imposed on such
        body, the public law remedy can be enforced.
        The duty cast on the public body may be either
        statutory or otherwise and the source of such
        power is immaterial, but, nevertheless, there
        must be the public law element in such action.
        Sometimes, it is difficult to distinguish between public
        law and private law remedies. According to Halsbury’s
        Laws of England, 3rd Edn., Vol. 30, p.682,
              “1317. A public authority is a body, not
              necessarily a county council, municipal
              corporation or other local authority which
              has public statutory duties to perform and
              which perform the duties and carries out
              its transactions for the benefit of the public
              and not for private profit.”
        There cannot be any general definition of public
        authority or public action. The facts of each case
        decide the point.”
        …..
        Applying these principles, it can very well be said
        that a writ of mandamus can be issued against a
        private body which is not a State within the meaning
        of Article 12 of the Constitution and such body is
        amenable to the jurisdiction under Article of the
[2025] 7 S.C.R.                                                       1787

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

                Constitution and the High Court under Article 226
                of the Constitution can exercise judicial review of
                the action challenged by a party. But there must
                be a public law element and it cannot be exercised
                to enforce purely private contracts entered into
                between the parties.”
     8.4. Respondent No. 1 was incorporated on 14.07.2004 to develop,
          build, maintain, and operate the State Highways, District or other
          local body roads, expressways, and government buildings in
          Madhya Pradesh. Respondent No. 1 also, on contract, develops
          and maintains National Highways in or passing through Madhya
          Pradesh. The Madhya Pradesh Highways Act, 2004, repealing
          the 1936 Act, also reiterates the State’s role in the development,
          construction, and maintenance of roads in the State. Since the
          right to access any part of the country, with certain exceptions
          and restrictions under certain circumstances, is a fundamental
          right guaranteed under Article 19(1)(g) of the Constitution,
          and the right to safe, well-maintained, and motorable roads
          is recognised as a part of the right to life under Article 21 of
          the Constitution of India, it is the responsibility of the State to
          develop and maintain the roads directly under its control. The
          contract for laying of a State Highway/District Road, when
          assigned by the Corporation owned and run by the government,
          assumes the character of a public function – even if performed
          by a private party – and would satisfy the functionality test to
          sustain the writ petition. Accordingly, in view of the statutory
          framework and the nature of relief sought, the writ petition
          involves a public law element and was thus maintainable before
          the High Court. The decisions relied upon by the appellant
          are factually distinguishable and pertain to materially different
          contexts. As such, they do not advance the appellant’s case
          and have no application to the facts and legal issues involved
          in the present case.
9.   Assailing the impugned judgment passed by the High Court, the
     learned Senior Counsel for the appellant submitted that the Madhya
     Pradesh Arbitration Tribunal constituted under the 1983 Act is
     competent to entertain disputes only where there is an ascertained
     claim exceeding Rs.50,000/-. In the present case, there is no such
1788                                                       [2025] 7 S.C.R.

                        Supreme Court Reports


     ascertained monetary claim raised, and hence, the appellant was
     not obliged to approach the said Tribunal. Further, it was submitted
     that Clause 44.3.1 of the Concession Agreement contains a valid
     arbitration clause, which entitles the appellant to invoke arbitration
     under the 1996 Act.
     9.1. In contrast, the learned Senior Counsel for Respondent No.1
          contended that the Concession Agreement relates to the
          construction and development of a State Highway/District
          Road and squarely falls within the ambit of a ‘works contract’
          as defined under section 2(1)(i) of the 1983 Act. It was further
          submitted that the 1983 Act, being a special law, has an
          overriding effect and mandates that disputes arising out of
          such works contracts must be adjudicated exclusively by the
          Madhya Pradesh Arbitration Tribunal.
10. It is not in dispute that the road in question is a State Highway/
    District Road and forms part of the assets of the State of Madhya
    Pradesh. Admittedly, the Concession Agreement qualifies as a
    “works contract”. The State Legislature enacted the 1983 Act to
    establish a special statutory mechanism for adjudication of disputes
    arising out of works contracts involving the State Government or
    its instrumentalities, including public sector undertakings. The
    relevant provisions of the 1983 Act are extracted below, for better
    appreciation:
          “Section 2 (1)(d) – “Dispute” means claim of ascertained
          or ascertainable money valued at Rupees 50,000 or more
          relating to any difference arising out of the execution or
          non-execution of a works contract or part thereof.”
          Section 2 (1)(i) - “works-contract” means an agreement
          in writing or a letter of intent or work order issued for the
          execution of any work relating to construction, repair or
          maintenance of any building or superstructure, dam, weir,
          canal, reservoir, tank, lake, road, well, bridge, culvert,
          factory, work-shop, powerhouse, transformer or such other
          works of the State Government or Public Undertakings or
          of the Corporations of the State as the State Government
          may, by notification, specify in this behalf at any of its
          stages, entered into by the State Government or by an
[2025] 7 S.C.R.                                                                        1789

         Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
            M.P. Road Development Corporation and Another

              official of the State Government or by Public Undertakings
              or Corporation or by any official of the State Government for
              and on behalf of such Corporation or Public Undertakings
              and includes an agreement for supply of goods or material
              and all other matters relating to the execution of any of
              the said works and also includes the services so hired for
              carrying out the aforesaid works and shall also include
              all concession agreement, so entered into by the State
              Government or public undertakings or Corporation, wherein
              a State support is involved or not.
                18
                  [The agreements in writing for the execution of the work
                relating to construction, repair or maintenance of electric
                lines, water supply and sewerage/drainage system shall
                also be “works contract”]”
                “Section 3 - Constitution of Tribunal
                The State Government shall by notification constitute
                an Arbitration Tribunal for resolving all such disputes or
                differences pertaining to works contract or arising out of
                or connected with execution, discharge or satisfaction of
                any such works contract.”
                “Section 7 – Reference to Tribunal
                (1) Either party to a works contract shall irrespective of
                the fact whether the agreement contains an arbitration
                clause or not, refer in writing the dispute to the Tribunal”
                ….
                7-A Reference Petition
                (1) Every reference petition shall include whole of the
                     claim which the party is entitled to make in respect
                     of the works contract till the filing of the reference
                     petition but no claims arising out of any other works
                     contract shall be joined in such a reference petition
                (2) …


18   Notification No.17/E/85/96/XXI-B(II)-21 Dt.4.11.1996 of Govt. of M.P. Law Deptt.
1790                                                     [2025] 7 S.C.R.

                     Supreme Court Reports


        7-B Limitation
        (1)   The Tribunal shall not admit a reference petition
              unless –
        (a) the dispute is first referred for the decision of the
        final authority under the terms of the works contract; and
        (b) the petition to the Tribunal is made within one year
        from the date of communication of the decision of the
        final authority:
        Provided that if the final authority fails to decide the
        disputes within a period of six months from the date
        of reference to it, the petition to the Tribunal shall be
        made within one year of the expiry of the said period
        of six months.
        (2) Notwithstanding anything contained in sub-section
        (1), where no proceeding has been commenced at all
        before any Court preceding the date of commencement
        of this Act or after such commencement but before the
        commencement of the Madhya Pradesh Madhyastham
        Adhikaran (Sanshodhan) Adhiniyam, 1990, a reference
        petition shall be entertained within one year of the date
        of commencement of Madhya Pradesh Madhyastham
        Adhikaran (Sanshodhan) Adhiniyam, 1990 irrespective
        of the fact whether a decision has or has not been made
        by the final authority under the agreement.
        (2-A) Notwithstanding anything contained in sub-section
        (1), the Tribunal shall not admit a reference petition unless
        it is made within three years from the date on which the
        works contract is terminated, foreclosed, abandoned or
        comes to an end in any other manner or when a dispute
        arises during the pendency of the works contract:
        Provided that if a reference petition is filed by the State
        Government, such period shall be thirty years.
        Section 20 - Bar of jurisdiction of Civil Court. —
        (1) As from the date of the constitution of the Tribunal
        and notwithstanding anything contained in Arbitration Act,
[2025] 7 S.C.R.                                                         1791

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

            1940 (No.10 of 1940) or any other law, for the time being
            in force, or in any agreement or usage to the contrary, no
            Civil Court shall have jurisdiction to entertain or decide
            any dispute of which cognizance can be taken by the
            Tribunal under this Act.
     10.1. It is thus evident that Section 2(1)(i) of the 1983 Act defines
           ‘works contract’ to expressly include concession agreements
           executed by the State or its instrumentalities, regardless of
           whether direct financial support from the State is involved.
           Section 7 clearly mandates that all disputes arising from
           such works contract shall be referred to the Madhya Pradesh
           Arbitration Tribunal, even if the agreement contains an
           arbitration clause to refer the dispute under any enactment. The
           Arbitration and Conciliation Act, 1996 repealed the Arbitration
           Act, 1940. The 1940 Act was in force when the Madhya
           Pradesh Arbitration Tribunal Act, 1983 came into force. The
           reference contemplated under the 1983 Act implies that the
           claims covered by the Act shall be decided only by the Tribunal
           constituted under its provisions, when it comes to a works
           contract with the State Government, an instrumentality of the
           State, or a State Corporation. The Arbitration and Conciliation
           Act, 1996 came into force on 22nd August, 1996. A reading of
           sub-sections (3), (4), and (5) of Section 2 of the 1996 Act also
           illustrates that reference to a special tribunal under a special
           enactment would survive, irrespective of the existence of a
           mechanism under the 1996 Act. Further, we do not see any
           repugnancy between the enactments. Section 20 of the Act,
           1983 imposes a bar on the jurisdiction of civil Courts, thereby
           reinforcing the exclusive and overriding nature of the statutory
           mechanism established under the 1983 Act.
11. In Viva Highways Ltd (supra), a Full Bench of the Madhya Pradesh
    High Court categorically held that where an agreement qualifies as
    a “works contract” under Section 2(1)(i) of the 1983 Act, and the
    dispute falls within the scope of Section 2(1)(d), the reference to
    the Madhya Pradesh Arbitration Tribunal constituted under Section
    3 of the 1983 Act is mandatory, notwithstanding the presence of any
    arbitration clause in the agreement. The relevant portion of the Full
    Bench decision is extracted below:
1792                                                     [2025] 7 S.C.R.

                       Supreme Court Reports


          “82. On the basis of foregoing analysis, we may
          summarize our conclusions as under:
          (i) If an agreement by whatever name called falls within
          the definition of “works contract” and difference between
          the parties is covered in the definition of ‘dispute’ as
          defined under the Adhiniyam of 1983, it has to be referred
          for adjudication before the Tribunal constituted under
          Section 3 of the Adhiniyam of 1983.
          (ii) In view of statutory provision of Section 7 of the
          Adhiniyam of 1983, even in cases where the parties
          have incorporated a clause in such agreement regarding
          resolution of dispute by some other forum or under the
          Act of 1996, the forum subject to (i) above, would be the
          Tribunal under the Adhiniyam of 1983. This conclusion,
          however, will presently not include the cases of terminated
          contract, which aspect is pending consideration before
          a Larger Bench of the Supreme Court. The decision of
          Larger Bench will draw the curtains on this aspect.
          (iii) The judgment of Jabalpur Corridor (supra) reported
          in 2014 (2) MPLJ 276 and Ashoka Infraways Ltd. (supra)
          reported in 2016 (2) MPLJ 685 are overruled.
          (iv) The substituted definition of “works contract” is
          clarificatory in nature, hence it will be retrospective in
          operation.
          (v) The words “claim of ascertained money” have a definite
          connotation and therefore only such difference arising out
          of execution or non-execution of a ‘works contract’ which
          are related with claims of above nature will be covered
          under Section 2(1)(d) of the Adhiniyam of 1983”.
    11.1. The correctness of the aforesaid judgment was challenged
          before this Court in SLP (C) No. 17070 of 2017 and SLP (C)
          Nos.1635-1637 of 2018, both of which were dismissed. As a
          result, the legal position laid down in Viva Highways stands
          affirmed. It is also pertinent to note that the appellant herein
          was a party to those very proceedings before this Court and
          is thus fully aware of the binding nature of the ruling.
[2025] 7 S.C.R.                                                         1793

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

     11.2. While the learned Senior Counsel for the appellant has
           attempted to distinguish the decision in Viva Highways on
           the ground that the appellant’s claims are not “ascertained”,
           such an argument is untenable. The list of claims filed by
           the appellant clearly discloses a quantified monetary claim
           of Rs.280.1566 crores, which was specifically pleaded in the
           reference petition. This squarely falls within the definition of
           “dispute” under Section 2(1)(d) of the 1983 Act, which includes
           both ascertained and ascertainable monetary claims. The list
           of claims is reproduced below for better understanding:

             Claim                   Description                   Amount
              No.                                                (in crores)
               1.    Damages under clause 4.2 of Concession 0.736
                     Agreement
               2.    Damages under clause 10.3.4 of Concession 0.235
                     Agreement
               3.    Compensation for re-working of GSB/ 8.63
                     WMM and preparation of sub grade due
                     to decision beyond contract and delayed
                     appointment of I.E
               4.    Additional work done as per instructions of 13.43
                     Independent Engineer
               5     Revision of rates in cost of working due to 7.07
                     delay in completion, due to changed time
                     of execution
               6.    Extra cost of utility duct, private land
                     acquisition cost, cost of Non-destructive
                     testing and cost of six extra Hume pipe
                     culverts:
                     i) Cost of construction of Utility Ducts
                     ii) Acquisition of land for ROW by 0.27
                     Concessionaire
                                                                0.05
                     iii) Cost for Non-destructive testing
                                                                0.06
                     iv) Construction of 6 additional Hume pipe
                     Culverts                                   0.28
1794                                                  [2025] 7 S.C.R.

                  Supreme Court Reports



        7.    Extra cost of carriage due to collapse of the 0.65
              Major Bridge in Km. 9+600 of the Project
              stretch
        8.    Loss of Two Annuities (Bonus)                13.94
        9.    Loss of Toll Revenue due to delay in 8.83
              achieving COD and thereafter collapse of
              Bridge
        10.   Loss of Two Annuities                        13.94
        11.   Idling charges of Manpower and Machinery 31.21
        12.   Additional Bank Interest                     13.22
        13.   Loss of profit to EPC contractor due to 10.67
              delay in completion of work
        14.   Amount recovered from 1st Annuity due to 0.1656
              non-sanction of EOT beyond 20.05.2015
              to 04.07.2015 (45 days)
        15.   Amount deducted under negative change 1.43
              of scope
        16.   Bank Charges and interest (Market interest 0.32
              deposit interest) on margin money of
              performance security retained beyond
              contract
        17.   Interest on delayed release of Annuities (1st 0.76
              2nd and 3rd Annuity)
        18.   Additional expenditure on completion of 0.46
              Punch List item
        19.   Loan installment amount of bank which 15.00
              could not be paid till date due to delayed
              payments of Annuity by MPRDC
        20.   Loss of further business                     138.80
        21.   Declaring award of grant of extension 0
              of time for 941 days against 335 days
              approved by MPRDC in light of letter No.
              UPP/MDR/MPRDC/2012/HQ-11, dated
              30.04.2014 and UPP MDR MPRDC/2012
              HQ-21 dated 20.06.2015
[2025] 7 S.C.R.                                                           1795

        Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
           M.P. Road Development Corporation and Another


                  22.    Cost of Litigation                           As per
                                                                      award
                  23.    Interest antelite, pendentelite and future   As
                                                                      awarded
                                                                      by the
                                                                      Tribunal
                         TOTAL                                        280.1566

      11.3. It is well settled that a claim which can be determined
            through evidence and quantification falls within the ambit
            of the term ‘ascertained’. Furthermore, post Viva Highways,
            the Legislature amended section 2(1)(d) of the 1983 Act to
            expressly include “unascertained” money claims within the
            definition of “dispute”. This amendment was enacted precisely
            to override the restrictive interpretation of “ascertained” claims
            and to expand the Tribunal’s jurisdiction to cover all monetary
            disputes – whether ascertained or not.
      11.4. In this context, reference may be made to the decision
            in Gangotri Enterprises Ltd v. Madhya Pradesh Road
            Development Corporation19, where this Court observed that:
                    “3. We consider it appropriate to clarify that
                    the expression “ascertained money” as used in
                    Section 2(d) of the 1983 Act will include not only
                    the amount already ascertained but the amount
                    which may be ascertained during the proceedings
                    on the basis of claims/ counter claims of the
                    parties.”
      11.5. Further, in M.P. Rural Road Development Authority v. L.G.
            Chaudhary Engineers & Contractors (supra), a three-Judge
            Bench of this Court reaffirmed that in the context of a “works
            contract” in Madhya Pradesh, the 1983 Act has overriding
            effect over the 1996 Act. The relevant paragraphs are extracted
            below for ease of reference:



19   (2018) 16 SCC 296
1796                                                  [2025] 7 S.C.R.

                 Supreme Court Reports


        “3. The appellants raised objection that the matter
        being covered by a special State Act, namely, M.P.
        Madhyastham Adhikaran Adhiniyam, 1983 (“the M.P.
        Act”, in short), the application under Section 11 of
        the Arbitration and Conciliation Act, 1996 could not
        be entertained. The High Court, however, overruled
        the said objection relying upon the judgment of this
        Court in VA Tech Escher Wyass Flovel Ltd. v. M.P.
        SEB [VA Tech Escher Wyass Flovel Ltd. v. M.P. SEB,
        (2011) 13 SCC 261: (2012) 3 SCC (Civ) 468].
        4. When the matter was considered by a Bench of
        this Court on 24-1-2012 (order in M.P. Rural Road
        Development Authority v. L.G. Chaudhary Engineers
        and Contractors [M.P. Rural Road Development
        Authority v. L.G. Chaudhary Engineers and Contractors,
        (2012) 3 SCC 495 : (2012) 2 SCC (Civ) 210]), this
        Court held that the judgment in VA Tech Escher Wyass
        Flovel Ltd. [VA Tech Escher Wyass Flovel Ltd. v. M.P.
        SEB, (2011) 13 SCC 261 : (2012) 3 SCC (Civ) 468]
        was per incuriam insofar as it held that the M.P. Act
        stands impliedly repealed by the Central Act. While
        Hon’ble Ganguly, J., held that the State Act will cover a
        dispute even after termination of the “works contract”,
        Hon’ble Gyan Sudha Mishra, J. took a different view
        as follows: (M.P. Rural Road Development case [M.P.
        Rural Road Development Authority v. L.G. Chaudhary
        Engineers and Contractors, (2012) 3 SCC 495 : (2012)
        2 SCC (Civ) 210], SCC p. 511, para 51)
             “51. It is no doubt true that if the matter
             were before an arbitrator appointed under
             the Arbitration and Conciliation Act, 1996
             for adjudication of any dispute including
             the question regarding the justification and
             legality as to whether the cancellation of
             works contract was legal or illegal, then
             the said arbitrator in view of the ratio of the
             judgment of the Supreme Court in Maharshi
             Dayanand University v. Anand Coop.
[2025] 7 S.C.R.                                                           1797

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

                     L/C Society Ltd. [Maharshi Dayanand
                     University v. Anand Coop. L/C Society
                     Ltd., (2007) 5 SCC 295], as also in view of
                     the persuasive reasoning assigned in the
                     judgment and order in Heyman v. Darwins
                     Ltd. [Heyman v. Darwins Ltd., 1942 AC
                     356 : (1942) 1 All ER 337 (HL)] would
                     have had the jurisdiction to adjudicate
                     the dispute regarding the justification and
                     legality of cancellation of works contract
                     also. But the same cannot be allowed
                     to be raised under the M.P. Act of 1983
                     since the definition of “works contract”
                     unambiguously lays down in explicit terms
                     as to what is the nature and scope of
                     “works contract” and further enumerates
                     the specific nature of disputes arising out
                     of the execution of works contract which
                     would come within the definition of a “works
                     contract”. However, the same does not
                     even vaguely include the issue or dispute
                     arising out of cancellation and termination
                     of contract due to which this question,
                     in my considered opinion, would not fall
                     within the jurisdiction of the M.P. State
                     Arbitration Tribunal so as to be referred for
                     adjudication arising out of its termination.”
                5. We find from the definition under Section 2(d) of the
                Arbitration and Conciliation Act, 1996 that even after a
                contract is terminated, the subject matter of dispute is
                covered by the said definition. The said provision has
                not been even referred to in the judgment rendered
                by Hon’ble Gyan Sudha Mishra, J.
                6. In view of the above, we are of the opinion that
                the view expressed by Hon’ble Ganguly, J. is the
                correct interpretation and not the contra view of
                Hon’ble Gyan Sudha Mishra, J. Reference stands
                answered accordingly.
1798                                                           [2025] 7 S.C.R.

                               Supreme Court Reports


                   7. Taking up appeal on merits, we find that the High
                   Court proceeded on the basis of the judgment of
                   this Court in VA Tech Escher Wyass Flovel Ltd. [VA
                   Tech Escher Wyass Flovel Ltd. v. M.P. SEB, (2011)
                   13 SCC 261 : (2012) 3 SCC (Civ) 468] which has
                   been held to be per incuriam. The M.P. Act cannot
                   be held to be impliedly repealed.
                   8. We are, thus, in agreement with the proposed
                   opinion of Hon’ble Ganguly, J. in para 42 of the
                   reported judgment which reads as follows: (M.P.
                   Rural Road Development case [M.P. Rural Road
                   Development Authority v. L.G. Chaudhary Engineers
                   and Contractors, (2012) 3 SCC 495: (2012) 2 SCC
                   (Civ) 210], SCC p. 509, para 42)
                         “42. Therefore, appeal is allowed and the
                         judgment of the High Court which is based
                         on the reasoning of VA Tech Escher Wyass
                         Flovel Ltd. v. M.P. SEB [VA Tech Escher
                         Wyass Flovel Ltd. v. M.P. SEB, Misc. Appeal
                         No. 380 of 2003, order dated 5-3-2003
                         (MP)] is set aside. This Court holds the
                         decision in VA Tech Escher Wyass Flovel
                         Ltd. v. M.P. SEB [VA Tech Escher Wyass
                         Flovel Ltd. v. M.P. SEB, (2011) 13 SCC 261:
                         (2012) 3 SCC (Civ) 468] has been rendered
                         in per incuriam. In that view of the matter
                         the arbitration proceeding may proceed
                         under the M.P. Act of 1983 and not under
                         the Arbitration and Conciliation Act, 1996.”
                     The appeal is accordingly disposed of.”
           11.5.1. In a recent decision in Gayathri Project Ltd v. M.P. Road
                   Development Corporation Ltd20, this Court reiterated the
                   exposition of law laid down in L.G. Chaudhary in clear
                   terms, as follows:


20   2025 SCC OnLine SC 1136
[2025] 7 S.C.R.                                                             1799

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

                    “38 …..
                    i.     Where the arbitration proceedings are
                           still underway, but no statement of
                           defence has been filed, there it would
                           be open for the parties to raise an
                           objection of lack of jurisdiction in view
                           of the applicability of MP Act, 1983. The
                           parties will also be at liberty to approach
                           the High Court by way of a petition
                           under Article 227 of the Constitution
                           for seeking a transfer of the arbitration
                           proceedings to the M.P. State Arbitration
                           Tribunal under the MP Act, 1983.
                    ii.    Where the arbitration proceedings are still
                           underway, but statement of defence has
                           already been filed i.e., the relevant stage
                           for raising an issue of jurisdiction is already
                           crossed, there it would not be open for
                           the parties to raise an objection of lack of
                           jurisdiction in view of the applicability of MP
                           Act, 1983. Furthermore, in such scenarios
                           since the arbitration proceedings have
                           already commenced and made substantial
                           progress, it would not be appropriate to
                           transfer such proceedings to the M.P.
                           State Arbitration Tribunal under the MP
                           Act, 1983, and the better course of action
                           would be to let the arbitration proceedings
                           conclude.
                    iii.   As per L.G. Chaudhary (II) (supra) where
                           the arbitration proceedings have concluded
                           and an award has been passed, and if no
                           objection to the jurisdiction in view of the
                           applicability of MP Act, 1983 was taken
                           at the relevant stage then such an award
                           cannot be annulled only on the ground of
                           lack of jurisdiction.
1800                                                      [2025] 7 S.C.R.

                         Supreme Court Reports


                   iv.    Any award passed by an arbitral tribunal
                          under the Act, 1996, where otherwise the
                          MP Act, 1983 was applicable, such an
                          award may be challenged or assailed in
                          terms of Section 34 and thereafter Section
                          37 of the Act, 1996 and other relevant
                          provisions thereunder.
                   v.     Any award passed by an arbitral tribunal
                          under the Act, 1996, where otherwise the
                          MP Act, 1983 was applicable, such an
                          award must be executed in terms of the
                          MP Act, 1983 and the relevant provisions
                          thereunder.
                   vi.    Where the objection based on applicability
                          of the MP Act, 1983 had been raised
                          in the written statement or statement of
                          defence, but the parties never took steps
                          towards challenging the jurisdiction of the
                          arbitral tribunal under Section 16 of the
                          Act, 1996 or where such plea of jurisdiction
                          was turned down in view of the position
                          of law that was prevailing prior to L.G.
                          Chaudhary (II) (supra) i.e., such challenge
                          to the jurisdiction was decided prior to the
                          date of pronouncement of L.G. Chaudhary
                          (II) (supra), then even in such cases, as
                          per the decision of this Court in Modern
                          Builders (supra), the award should not be
                          disturbed or set-aside only on the ground
                          of lack of jurisdiction.”
    11.6. Likewise, in State of Chhattisgarh v. KMC Constructions Ltd
          (supra), this Court set aside the appointment of an arbitrator
          under the 1996 Act, holding that when a statutory mechanism
          under the 1983 Act exists, even a court order under the 1996
          Act cannot prevail, and parties must be relegated to the
          jurisdiction of the Madhya Pradesh Arbitration Tribunal. The
          relevant paragraphs are extracted below for ready reference:
[2025] 7 S.C.R.                                                         1801

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

                “In view of judgment of this Court in Madhya Pradesh
                Rural Road Development Authority and Anr. v. L.G.
                Chaudhary Engineers and Contractors, (2012) 3
                SCC 495 and the order passed by this Court on 8th
                March, 2018 in the same matter, the M.P. Arbitration
                Tribunal constituted under the M.P. Madhyastham
                Adhikaran Adhiniyam, 1983, (M.P. Act) has the
                exclusive jurisdiction to deal with the dispute in
                question. Accordingly, the impugned direction under
                Section 11 of the Arbitration and Conciliation Act,
                1996 cannot be sustained and is set aside.
                The parties are relegated to M.P. Arbitration Tribunal
                which may decide the dispute as per provisions of M.P.
                Madhyastham Adhikaran Adhiniyam, 1983 (M.P. Act)”
     11.7. In ARSS Damoh – Hirapur Tolls Pvt. Ltd v. M.P. Road
           Development Corporation (supra), this Court refused to allow
           private arbitration to continue where a works contract was
           involved, and directed the transfer of the pending arbitration
           proceedings to the Madhya Pradesh Arbitration Tribunal,
           thereby upholding the exclusive statutory forum.
     11.8. Similarly, in Madhya Pradesh Rural Road Development
           Authority v. Backbone Enterprises Limited (supra), this Court
           once again reinforced the exclusive jurisdiction of the Madhya
           Pradesh Arbitration Tribunal in matters arising from works
           contracts covered by the 1983 Act.
     11.9.   Given that the present Concession Agreement pertains
             to the construction of a State Highway situated entirely
             within the State of Madhya Pradesh and was awarded by
             Respondent No.1, a State-controlled entity, the agreement
             clearly qualifies as a “works contract” under section 2(1)(i)
             of the 1983 Act. Consequently, the dispute arising therefrom
             falls within the exclusive jurisdiction of the Madhya Pradesh
             Arbitration Tribunal.
     11.10. In view of the above statutory framework and judicial
            pronouncements, the Arbitration and Conciliation Act, 1996
            stands excluded by operation of law in such matters. The
1802                                                         [2025] 7 S.C.R.

                         Supreme Court Reports


             private arbitration proceedings initiated by the appellant are
             therefore, non est in law, and the proper forum for adjudication
             is the Madhya Pradesh Arbitration Tribunal established under
             the 1983 Act.
12. It is further not in dispute that the appellant had, in 2018 initiated
    Reference Case No.61 of 2018 before the Madhya Pradesh
    Arbitration Tribunal and had obtained issuance of notice. While the
    said reference was pending, the appellant simultaneously invoked
    arbitration under Clause 44.3.1 of the Concession Agreement
    and initiated private arbitration proceedings before the ICADR
    (Respondent No. 2) under the 1996 Act. This parallel invocation of
    remedies is impermissible in law and squarely hit by the doctrine
    of election and estoppel. A party cannot pursue two mutually
    inconsistent remedies under different legal regimes arising from
    the same cause of action.
     12.1. Even otherwise, Clause 44.3.1 of the Concession Agreement to
           the extent it purports to permit private arbitration, is inoperative
           insofar as it seeks to override the statutory mandate of the 1983
           Act. For proper appreciation, the relevant clauses relating to
           arbitration in the Concession Agreement are extracted below:
                “44.3 Arbitration
                44.3.1 Any Dispute which is not resolved amicably
                by conciliation, as provided in Clause 44.2, shall be
                finally decided by reference to arbitration by a Board
                of Arbitrators appointed in accordance with Clause
                44.3.2. Such arbitration shall be held in accordance
                with the Rules of Arbitration of the International
                Centre for Alternative Dispute Resolution, New
                Delhi (the ‘’Rules’’), or such other rules as may
                be mutually agreed by the Parties, and shall be
                subject to the provisions of the Arbitration Act.
                The venue of such arbitration shall be Bhopal and
                the language of arbitration proceedings shall be
                English.
                44.3.2 There shall be a Board of three arbitrators,
                of whom each Party shall select one, and the third
[2025] 7 S.C.R.                                                          1803

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

                arbitrator shall be appointed by the two arbitrators so
                selected and in the event of disagreement between
                the two arbitrators, the appointment shall be made
                in accordance with the Rules.
                44.3.3 The arbitrators shall make a reasoned award
                (the “Award”). Any Award made in any arbitration held
                pursuant to this Article 44 shall be final and binding
                on the Parties as from the date it is made, and the
                Concessionaire and MPRDC agree and undertake
                to carry out such Award without delay.
                44.3.4 The Concessionaire and MPRDC agree that an
                Award may be enforced against the Concessionaire
                and/or MPRDC, as the case may be, and their
                respective assets wherever situated.
                44.3.5 This Agreement and the rights and obligations
                of the Parties shall remain in full force and effect,
                pending the Award in any arbitration proceedings
                hereunder.
                44.4 Adjudication by Regulatory Authority or
                Commission
                In the event of constitution of a statutory Regulatory
                Authority or Commission with powers to adjudicate
                upon disputes between the Concessionaire and the
                MPRDC, all Disputes arising after such constitution
                shall, instead of reference to arbitration under Clause
                44.3, be adjudicated upon by such Regulatory
                Authority or Commission in accordance with the
                Applicable Law and all references to Dispute
                Resolution procedure shall be construed accordingly.
                For the avoidance of doubt, the Parties hereto agree
                that the adjudication hereunder shall not be final and
                binding until an appeal against such adjudication has
                been decided by an appellate tribunal or high Court,
                as the case may be, or no such appeal has been
                preferred within the time specified in the Applicable
                Law.”
1804                                                             [2025] 7 S.C.R.

                             Supreme Court Reports


      12.1. It is trite law that parties cannot contract out of a statutory
            obligation enacted in furtherance of public interest. In Booz
            Allen & Hamilton Inc. v. SBI Home Finance Ltd21, this Court
            held that arbitration is not permissible where the legislature
            has reserved adjudication of disputes to a special forum. The
            relevant observation is as follows:
                    “35. The Arbitral Tribunals are private fora chosen
                    voluntarily by the parties to the dispute, to adjudicate
                    their disputes in place of courts and tribunals
                    which are public fora constituted under the laws
                    of the country. Every civil or commercial dispute,
                    either contractual or non-contractual, which can be
                    decided by a court, is in principle capable of being
                    adjudicated and resolved by arbitration unless the
                    jurisdiction of the Arbitral Tribunals is excluded either
                    expressly or by necessary implication. Adjudication
                    of certain categories of proceedings are reserved by
                    the legislature exclusively for public fora as a matter
                    of public policy. Certain other categories of cases,
                    though not expressly reserved for adjudication by
                    public fora (courts and tribunals), may by necessary
                    implication stand excluded from the purview of
                    private fora. Consequently, where the cause/dispute
                    is inarbitrable, the court where a suit is pending,
                    will refuse to refer the parties to arbitration, under
                    Section 8 of the Act, even if the parties might have
                    agreed upon arbitration as the forum for settlement
                    of such disputes.”
13. The appellant’s submission that both parties intended to arbitrate
    under the 1996 Act carries no legal weight. The object and scheme
    of the 1983 Act is to channel all disputes arising from works contracts
    involving the State and its instrumentalities into a specialized statutory
    forum to ensure uniformity, efficiency, and public accountability. This
    intent is also reflected in Clause 44.4 of the Concession Agreement,
    which acknowledges that in the event of constitution of a competent


21   (2011) 5 SCC 532
[2025] 7 S.C.R.                                                       1805

       Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
          M.P. Road Development Corporation and Another

     statutory forum, such forum would override the contractual arbitration
     clause. Although it was argued that the Madhya Pradesh Arbitration
     Tribunal was not expressly contemplated under Clause 44.4, the
     existence of the Tribunal under the prevailing law and its exclusive
     jurisdiction cannot be contractually overridden or ignored.
     13.1. Accordingly, the attempt of the appellant to invoke Clause
           44.3.1 of the Concession Agreement and re-agitate the issue
           of private arbitration – already settled in Viva Highways and
           affirmed by this Court – is barred by the doctrine of constructive
           res judicata and amounts to an abuse of the process of law.
           The appellant is estopped from challenging the binding nature
           of Viva Highways, having itself been a party to the earlier SLP
           proceedings, wherein the said judgment was upheld.
14. Additionally, the appellant’s conduct in withdrawing the reference
    petition before the Madhya Pradesh Arbitration Tribunal, without
    seeking liberty to re-agitate the claims, and simultaneously initiating
    proceedings under the 1996 Act, constitutes forum shopping. This
    conduct, aimed at circumventing the statutory mechanism and
    reviving abandoned claims, is tainted with mala fides and deserves
    to be deprecated.
15. Further, the appellant’s claims – which arise from events dating back
    to 2013-2015 – are also barred by limitation under Section 43 of the
    1996 Act read with the Limitation Act, 1963. The belated invocation
    of arbitration in 2022, and its continuation in 2025, is thus clearly
    time-barred and legally unsustainable.
16. In view of the above, we find no infirmity in the reasoning or conclusion
    of the High Court in quashing the private arbitration proceedings and
    reaffirming the exclusive jurisdiction of the Madhya Pradesh Arbitration
    Tribunal established under the 1983 Act to adjudicate disputes arising
    from works contract involving the State or its instrumentalities.
17. At this juncture, it is to be noted that the appellant had voluntarily
    withdrawn the Reference Petition No.61 of 2018 under Rule 53(3)
    (b) of the M.P Arbitration Tribunal Regulations without seeking liberty
    to re-file the same. Rule 53 of the Madhya Pradesh Madhyastham
    Adhikaran Regulations, 1985, deals with the withdrawal and
    adjustment of references and reads as follows:
1806                                                        [2025] 7 S.C.R.

                         Supreme Court Reports


          “53. Withdrawal and adjustment of references –
          (1) At any time after the institution of a reference, the
          petitioner may as against all or any of the respondents
          abandon his reference or abandon a part of his claim.
          (2) Where the Tribunal is satisfied –
          (a) that a reference must fail by reason of some formal
          defect, or
          (b) that there are sufficient grounds for allowing the
          petitioner to institute a fresh reference for the subject
          matter of such reference or part of a claim; it may, on
          such terms as it thinks fit, grant the petitioner permission
          to withdraw from such reference or such part of the claim
          with liberty to institute a fresh reference in respect of the
          subject matter of such reference or such part of the claim.
          (3) Where the petitioner-
          (a) abandons any reference or part of claim under sub-
          regulation (1); or
          (b) withdraws from a reference or part of a claim without
          the permission referred to in sub-regulation (2); he shall
          be liable for such costs as the Tribunal may award and
          shall be precluded from instituting any fresh reference in
          respect of such subject matter or such part of the claim.”
     In terms of the statutory mandate under Rule 53(3)(b), once a
     reference is withdrawn without obtaining liberty to re-agitate the same,
     the appellant stands precluded from initiating a fresh reference on
     the same subject matter. This substantive bar also applies to any
     attempt to pursue the same claims before alternative fora.
     17.1. Nonetheless, considering the nature of the dispute and in the
           interests of justice, and in view of the submission made by
           the learned Solicitor General appearing for Respondent No.1,
           we are of the opinion that the appellant can be permitted to
           seek revival of Reference Petition No.61 of 2018 before the
           Madhya Pradesh Arbitration Tribunal.
18. Accordingly, we direct the appellant to file an application to recall the
    withdrawal order dated 08.02.2023 and seek restoration of Reference
[2025] 7 S.C.R.                                                      1807

          Umri Pooph Pratappur (UPP) Tollways Pvt. Ltd. and Anr. v.
             M.P. Road Development Corporation and Another

     Petition No.61 of 2018 within two weeks from the date of receipt
     of a copy of this judgement. Upon such filing, the Madhya Pradesh
     Arbitration Tribunal shall consider the application on its own merits
     and pass appropriate orders, within a further period of two weeks.
     If the Tribunal allows the restoration, the Reference Petition shall
     be disposed of on merits, in accordance with law, after affording
     reasonable opportunity of hearing to both parties, preferably within
     four months from the date of restoration.
19. This appeal stands disposed of in the above terms. There shall be
    no order as to costs.
20. Pending application(s), if any, also stand disposed of.


     Result of the case: Appeal disposed of.



     †
         Headnotes prepared by: Ankit Gyan


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