M/S. Narayandas Phoolchand Mishra ... vs State Of Madhya Pradesh
2025 Latest Caselaw 917 MP

Madhya Pradesh High Court

M/S. Narayandas Phoolchand Mishra ... vs State Of Madhya Pradesh on 2 June, 2025

                                                                 1                               WP-19748-2025
                                           IN THE HIGH COURT OF MADHYA PRADESH
                                                         AT INDORE
                                                         WP No. 19748 of 2025
                           (M/S. NARAYANDAS PHOOLCHAND MISHRA INFRASTRUCTURE PVT. LTD. THROUGH ITS AUTHORIZED
                                        SIGNATORY PRAKASH Vs STATE OF MADHYA PRADESH AND OTHERS )



                           Dated : 02-06-2025
                                  Shri Aniket Naik, learned counsel for the petitioner.
                                  Shri Amit Bhatia, learned Govt. Advocate for the respondents/State.

1. IA No.5052/2025 is taken up, which is an application for urgent hearing during summer vacation.

2. Considering the reasons assigned in the application IA No.5052/2025 is

allowed. The matter is taken up for hearing.

3. Learned counsel for the petitioner submits that the petitioner completed the work and thereafter completion certificate was also issued to the petitioner, however, on the basis of the audit report by order dated 09.05.2025 recovery has been initiated against the petitioner. Earlier also the petitioner approached this Court by preferring Writ Petition which was decided by order dated 31.01.2025 and petitioner was directed to approach to the competent authority as per the terms of the general conditions of the contract. Thereafter the petitioner approached to the competent authority, however the competent authority by impugned order

dated 09.05.2025 has rejected the objections raised by the petitioner and ordered to initiate the recovery against the petitioner.

4. Learned counsel for the petitioner further submits that the petitioner has already approached M.P. Arbitration Tribunal and filed a reference case which is still pending and during the pendency of the reference case no recovery can be initiated against the petitioner. He relied on the judgment of Supreme Court delivered in the matter of Tulsinarayan Garg V/s. M.P. Road Development

2 WP-19748-2025 Authority, Bhopal and Others 2022 (17) SCC 750 wherein the Apex Court has held that pending the reference case no recovery is permissible. He also relied on the interim order passed by the Vacation Bench of Principal Bench, Jabalpur in W.P. No.19594/2025 on 29.05.2025 (M/s. Vishwa Kusum Infratech V/s. M.P. Rural Road Development Authority and Others) whereby the recovery initiated against similarly situated contractor was stayed by the coordinate Bench.

5. Issue notice.

6. The notice is accepted by learned Government Advocate Shri Amit Bhatia on behalf of respondent No.1 on advance copy. Issue notice to the respondents No.2 to 4 on payment of process fee by tomorrow. Humdast notice be issued to the respondents in addition. The notices be made returnable within two weeks.

7. Considering the judgment delivered by Supreme Court in the matter of Tulsinarayan Garg (supra) and order dated 29.05.2025 passed by the coordinate Bench no coercive action be taken against the petitioner till next date of hearing.

8. List the matter in the week commencing 16.06.2025 .

C.c. as per rules.

                                    (VINAY SARAF)                               (PAVAN KUMAR DWIVEDI)
                                       V. JUDGE                                        V. JUDGE
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