Concession Agreement - The Legal Chamber

The Supreme Court upheld the exclusive jurisdiction of the Madhya Pradesh Arbitration Tribunal over disputes arising from state works contracts, as per the MP Madhyastham Adhikaran Adhiniyam, 1983. It ruled that a private arbitration clause in a concession agreement cannot override this statutory mandate, rendering such arbitration non-est in law. Facts Of The Case: The dispute arose from a Concession Agreement dated 05.01.2012 between Umri Pooph Pratappur Tollways Pvt. Ltd. (Appellant) and the Madhya Pradesh Road Development Corporation (Respondent) for the development of a state highway on a BOT (Toll + Annuity) basis. Following alleged breaches and delays attributed to the Respondent, the Appellant first initiated proceedings in 2018 before the Madhya Pradesh Arbitration Tribunal, a s...

The Supreme Court ruled that Article 20 of the Concession Agreements between MCD and private contractors did not constitute a valid arbitration clause under Section 7 of the Arbitration and Conciliation Act, 1996. The Court emphasized that clauses lacking mutual intent, impartial adjudication, and procedural fairness cannot be enforced as arbitration agreements, directing parties to pursue alternative remedies. The judgment reiterated the essential elements of arbitration clauses from K.K. Modi v. K.N. Modi (1998) and upheld precedent in SDMC v. SMS AAMW Tollways (2019). Facts Of The Case: The case involved three separate appeals before the Supreme Court concerning Concession Agreements between the Municipal Corporation of Delhi (MCD) and private contractors (SMS Ltd., DSC Ltd., and CCC ...

Tag: Concession Agreement

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