Madhya Pradesh High Court
M/S Esteem Infrabuild Private Limited vs The State Of Madhya Pradesh on 10 July, 2025
Author: Gurpal Singh Ahluwalia
Bench: G. S. Ahluwalia
NEUTRAL CITATION NO. 2025:MPHC-GWL:14448
1 AC-102-2024
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR
BEFORE
HON'BLE SHRI JUSTICE G. S. AHLUWALIA
ON THE 10th OF JULY, 2025
ARBITRATION CASE No. 102 of 2024
M/S ESTEEM INFRABUILD PRIVATE LIMITED
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Shri J.D.Suryavanshi, Senior Advocate with Shri Kunal Suryavanshi,
Advocate for the applicant.
Shri Arun Dudawat, Advocate for respondent No.2.
ORDER
This application, under Section 11(6) of Arbitration and Conciliation (Amendment) Act, 2015 (for short "the Act"), has been filed for appointment of sole arbitrator.
2. It is submitted by counsel for applicant that an agreement was executed on 26/11/2016 between petitioner and M.P. State Mining Corporation Ltd.. The dispute arose between the parties which has been duly raised by petitioner but arbitration clause has not been respected by the respondents. Accordingly, it is prayed that an Arbitrator may be appointed.
3. Counsel for respondent has no objection for appointment of Arbitrator. It is submitted that respondent/M.P. State Mining Corporation Ltd. has also filed Civil Suit No.9B/2022 for recovery of Rs.3,08,547/- along with interest pendente lite and future interest at the rate of 18% per annum. It is submitted that since petitioner has approached this Court under section Signature Not Verified Signed by: ANAND SHRIVASTAVA Signing time: 7/16/2025 10:51:10 AM NEUTRAL CITATION NO. 2025:MPHC-GWL:14448 2 AC-102-2024 11(6) of the Act, therefore, respondent may be permitted to file counter- claim on the grounds which have been raised in Civil Suit No.9B/2022 pending in the Court of Civil Judge, Junior Division, Gwalior,
4. Heard, learned counsel for the parties.
5. It is the case of the parties that contract to sell the sand from sand quarry situated at Village Gadhoda/Kupeda, Tahsil Bhitarwar, District Bhind, Survey No.158, area 17.456 hectares was allotted to petitioner by acceptance letter dated 8/7/2015 and agreement was executed by respondent on 26/12/2016. After extracting the sand for considerably long time, petitioner filed an application on 1/11/2017 for surrendering the mine. Thereafter, on 14/11/2017, petitioner filed another application for withdrawal of application dated 1/11/2017. However, again on 27/12/2017, petitioner moved an application for surrendering the mine. As per clause 2.22 of the agreement, request of petitioner to surrender the mine was accepted by order dated 10/06/2021 subject to recovery of outstanding amount of Rs.1,40,249/- . In spite of service of order dated 10/6/2021, petitioner did not deposit the aforesaid amount. Accordingly, Civil Suit was filed by the respondent.
6. Since applicant has approached this Court under section 11(6) of the Act and civil suit which was filed by the respondent also arises out of the same contract, contention of respondent/M.P. State Mining Corporation Ltd. that it may be permitted to file counter-claim before the Arbitrator is bonafide and is, hereby, accepted.
7. In view of the above, arbitration case filed by applicant is disposed of with following directions:-
Signature Not Verified Signed by: ANAND SHRIVASTAVA Signing time: 7/16/2025 10:51:10 AMNEUTRAL CITATION NO. 2025:MPHC-GWL:14448 3 AC-102-2024
(i) Arbitration case is referred to Madhya Pradesh Arbitration Centre (Domestic and International), Jabalpur (M.P.D.I.S.E.)
(ii) Shri Justice R.S.Jha, Former Chief Justice, R/o 913, Golbazar, Wright Town, Jabalpur (M.P.), Email id - [email protected] is appointed as sole independent Arbitrator to resolve the dispute between the parties.
(iii) Petitioner, as well as, respondent/M.P. State Mining Corporation Ltd. shall file its claim/counter-claim before the sole arbitrator on payment of requisite court fee, as well as, other expenses as payable under law.
(iv) The sole Arbitrator is requested to decide the claim, as well as, counter-claim (if filed). If counter-claim is filed then the same shall not be dismissed on the ground that respondent had filed Civil Suit No.9B/2022 and it shall be decided on its own merits.
(v) Respondent/M.P. State Mining Corporation Ltd. shall be free to withdraw its civil suit with liberty to pursue the arbitration proceedings.
(vi) Director of Madhya Pradesh Arbitration Centre (Domestic and International), Jabalpur (M.P.D.I.S.E.) is directed to inform the said Arbitrator regarding his appointment and receive his consent. If said Arbitrator does not give his consent then matter may be referred to this Court for appointment of another Arbitrator.
(vii) Director in consultation with Arbitrator and parties shall fix date for arbitration.
(viii) Arbitration case shall be carried out at Arbitration Center, Jabalpur (M.P.).
Signature Not Verified Signed by: ANAND SHRIVASTAVA Signing time: 7/16/2025 10:51:10 AMNEUTRAL CITATION NO. 2025:MPHC-GWL:14448 4 AC-102-2024
(ix) Parties are directed to deposit necessary charges and fees as per M.P. Arbitration Center (Domestic and International) Rules, 2019.
(x) Other provisions of Section 15(3)(4) of the Arbitration and Conciliation Act, 1996 will apply to Substitute Arbitrator.
(G. S. AHLUWALIA) JUDGE (and) Signature Not Verified Signed by: ANAND SHRIVASTAVA Signing time: 7/16/2025 10:51:10 AM