M/S Vishal Construction vs Shri Nanhe Khan
2023 Latest Caselaw 12755 MP

IN THE HIGH COURT OF MADHYA PRADESH
            AT JABALPU R
                           BEFORE
             HON'BLE SHRI JUSTICE VISHAL DHAGAT
                ARBITRATION CASE No. 6 of 2022

BETWEEN:-

M/S VISHAL CONSTRUCTION THROUGH SHRI
NARENDRA BHAKT, ADULT S/O SHRI VASUDEO
BHAKT, R/O 18 MOHAN NAGAR, BYPASS ROAD
PIPLANI, BHOPAL (MADHYA PRADESH).


                                                              .....APPLICANT

(BY SHRI UMESH NIGAM - ADVOCATE WITH SHRI PRATEEK JAIN -
ADVOCATE FOR APPLICANT)

AND

SHRI NANHE KHAN S/O LATE SHRI RAMJAN KHAN,
R/O VILLAGE KHAJURI KALAN, NEAR PIPLANI, TEH.
HUZUR DISTT. BHOPAL (MADHYA PRADESH).

                                                           ..... RESPONDENT

(BY SHRI BALAJI AKILLAWAR - ADVOCATE FOR RESPONDENT).

Reserved on                      : 19.07.2023

Pronounced on                    : 08.08.2023

      This application having been heard and reserved for orders,
coming on for pronouncement this day, the Court pronounced the
following:

                                  ORDER

Applicant has filed this application under Section 11(6) of Arbitration and Conciliation Act, 1996 making a prayer for appointment of Arbitrator as per Clause 22 contained in Joint Venture Agreement dated 20.04.2010.

- 2 -

2. Respondent has filed its reply and stated that applicant has already filed a civil suit, which has been adjudicated and judgment and decree was passed on 15.05.2015. Thereafter, First Appeal No. 481/2015 was preferred against said judgment and decree. First appeal was also decided vide judgment and decree dated 20.04.2022. Now matter is before Apex Court for consideration and operation of the judgment and decree dated 20.04.2022 passed in F.A. No. 481/2015 has been stayed by Apex Court vide its order dated 29.03.2023 passed in Special Leave Petition (Civil) Diary No. 42310/2022. In these circumstances, counsel appearing for respondent made a prayer for dismissal of arbitration case.

3. Heard the counsel for the parties and perusal judgment and decree dated 15.05.2015.

4. Trial Court in its judgment and decree dated 15.05.2015 has given a finding that Joint Venture Agreement dated 20.04.2010 was executed by playing fraud and not binding on defendant. Applicant is seeking appointment of Arbitrator on basis of Joint Venture Agreement dated 20.04.2010. Issue on joint venture agreement dated 20.04.2010 has been decided and it was held that joint venture agreement is not binding on respondent as same is executed playing fraud. Appeal has also been decided by High Court and matter is pending before Supreme Court. In these circumstances, no direction can be given for appointment of Arbitrator on basis of Arbitration Clause 22 in Joint Venture Agreement dated 20.04.2020.

5. In view of same, arbitration case filed by applicant is dismissed.

(VISHAL DHAGAT) JUDGE

vkt Digitally signed by VINOD KUMAR TIWARI DN: c=IN, o=HIGH COURT OF MADHYA PRADESH, ou=HIGH

VINOD KUMAR COURT OF MADHYA PRADESH, postalCode=482001, st=Madhya Pradesh, 2.5.4.20=502f56362111056e3584ca82279e5efd816766cb7c 5a1f490a5ca63b1116883f,

TIWARI pseudonym=064375E039EECAAF492B2C2C606076E420E16 3D2, serialNumber=121D0E9F65C983AD5649337870262247711 1B5016F24D35FA8A76C2CA46685EE, cn=VINOD KUMAR TIWARI Date: 2023.08.11 12:51:57 +05'30'