{"id":21530,"date":"2010-05-07T00:00:00","date_gmt":"2010-05-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-bansal-highway-construction-vs-the-state-of-madhya-pradesh-on-7-may-2010"},"modified":"2016-01-09T05:11:28","modified_gmt":"2016-01-08T23:41:28","slug":"ms-bansal-highway-construction-vs-the-state-of-madhya-pradesh-on-7-may-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-bansal-highway-construction-vs-the-state-of-madhya-pradesh-on-7-may-2010","title":{"rendered":"M\/S Bansal Highway Construction vs The State Of Madhya Pradesh on 7 May, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Madhya Pradesh High Court<\/div>\n<div class=\"doc_title\">M\/S Bansal Highway Construction vs The State Of Madhya Pradesh on 7 May, 2010<\/div>\n<pre>                                                                              1\n\n\n\n\n                      MCC No.1224\/08\n                      MCC No.1225\/08\n\n\n\n\n7.5.2010<\/pre>\n<p>      Shri Sanjay Agrawal, Counsel for petitioner.<br \/>\n         This order shall decide MCC No.1224\/08 (M\/s Bansal Highway<br \/>\nConstruction Vs. State of M.P. &amp; others) and MCC No.1225\/08 (M\/s<br \/>\nBansal Highway Construction Vs. State of M.P. &amp; others) in which<br \/>\nreview of order dated 3.4.2008 has been sought on similar set of facts.<br \/>\nFor the convenience, the facts are taken from MCC No.1224\/08.\n<\/p>\n<p>         This application is filed seeking review of order dated 3.4.2008<br \/>\nin Arbitration Case No.23\/2007 by which application filed by the<br \/>\napplicant for appointment of arbitrator under section 11 of the<br \/>\nArbitration and Conciliation Act, 1996 was rejected on the ground that<br \/>\nthe dispute between parties would have been referred to the M.P.<br \/>\nArbitration Tribunal under the provisions of the M.P. Madhyastham<br \/>\nAdhikaran Adhiniyam, 1983.\n<\/p>\n<p>         Learned counsel for petitioner submitted that to invoke the<br \/>\njurisdiction of the said tribunal, a dispute should be of ascertained<br \/>\nmoney valuing at Rs.50,000\/- or more. If the dispute is not of the<br \/>\naforesaid sum of Rs.50,000\/- or more, it cannot be referred to the<br \/>\nTribunal under Section 7 of the Ahiniyam. It is submitted that as the<br \/>\ndispute was not of ascertained sum of more than Rs.50,000\/-, the<br \/>\ntribunal was having no jurisdiction to entertain the reference. So order<br \/>\ndated 3.4.2008 may be reviewed.\n<\/p>\n<p>         From the perusal of the application under section 11(6) of the<br \/>\nArbitration and Conciliation Act, 1996 filed as Arbitration Case<br \/>\nNo.23\/07 the applicant sought following reliefs:-\n<\/p>\n<blockquote><p>         &#8220;It is, therefore, prayed that this Hon&#8217;ble Court be pleased to<br \/>\n         appoint an arbitrator for deciding the dispute arising out of the<br \/>\n         contract agreement.&#8221;<\/p>\n<p>The applicant stated in paras 10 to 14 of the aforesaid application<br \/>\nthus:-\n<\/p>\n<blockquote><p>         &#8220;10.   That the security deposit was, thus, to consist of earnest<br \/>\n         money plus a deduction of 5 percent from the payment made in<br \/>\n         the running bills till the two together amount to 5 percent of the<br \/>\n<span class=\"hidden_text\">                                                                          2<\/span><\/p>\n<p>                    MCC No.1224\/08<br \/>\n                    MCC No.1225\/08<\/p>\n<p>7.5.2010<br \/>\n     cost of work of tender or 5 percent of the cost of the works<br \/>\n     executed when the same exceeds the cost of work put to tender.\n<\/p><\/blockquote>\n<blockquote><p>     11.     That accordingly the applicant deposited the earnest<br \/>\n     money to the tune of Rs.1,50,000\/-. The total cost of the entire<br \/>\n     work executed by the applicant firm was to the tune of<br \/>\n     Rs.2,14,42,016\/-, upon which an amount of Rs.10,72,101\/- was<br \/>\n     deducted from the bills at the rate of 5% of the total amount of<br \/>\n     work. The Non-applicant No.4 further, in terms of the agreement<br \/>\n     deducted 15% of the amount from each running bills towards<br \/>\n     performance and maintenance security. Such 15% amount come<br \/>\n     to Rs.32,16,302\/-. Thus the total amount which has been deducted<br \/>\n     by the Non-applicant No.4 towards 5% security deposit and 15%<br \/>\n     performance and maintenance security is Rs.42,88,403\/-. The<br \/>\n     applicant had also deposited an amount of Rs.1,50,000\/- towards<br \/>\n     earnest money deposit at the time of the submission of tender.\n<\/p><\/blockquote>\n<blockquote><p>     12.     That on account of completion of the work, 75% of the<br \/>\n     security deposit of Rs.10,72,101\/- has since been released. The<br \/>\n     amount so released was Rs.8,04,076\/- and the balance 25% of<br \/>\n     Rs.10,72,101\/- is still with the Non-applicant-department which<br \/>\n     comes to Rs.2,68,025\/-. An amount of Rs.1,50,000\/- which was<br \/>\n     deposited by the applicant towards EMD has also been released .\n<\/p><\/blockquote>\n<blockquote><p>     13.     That the total amount on different heads which is in<br \/>\n     deposit in cash with the Non-applicants is as follows:-\n<\/p><\/blockquote>\n<blockquote><p>      (1)    5% Security Deposit                 &#8211;      Rs.10,72,101\/-\n<\/p><\/blockquote>\n<blockquote><p>             (i)   75% of the said amount        &#8211;      Rs.8,04,076\/-\n<\/p><\/blockquote>\n<blockquote><p>                   released on account of<br \/>\n                   completion of work<\/p>\n<\/blockquote>\n<blockquote><p>             (ii)    Balance 25% of security     &#8211;      Rs.2,68,025\/-<\/p><\/blockquote>\n<blockquote><p>                     deposit<\/p>\n<p>      (2)    15% of total cost of work           &#8211;      Rs.32,16,302\/-\n<\/p><\/blockquote>\n<blockquote><p>             executed towards performance<br \/>\n             and maintenance security<\/p>\n<\/blockquote>\n<blockquote><p>      (i)    Out of the said amount            &#8211;        Rs.20,50,000\/-\n<\/p><\/blockquote>\n<blockquote><p>             Rs.20,50,000\/- replaced by two<br \/>\n             Bank guarantees of Rs.10,25,000\/-<br \/>\n             each bearing No.STA\/161\/05 dt.<br \/>\n             23.7.2006 and STA\/162\/05 dt.<\/p><\/blockquote>\n<pre>\n             23.7.2006\n\n                     Balance                     -      Rs.11,66,302\n\n<\/pre>\n<blockquote><p>      14.    The balance cash deposit is Rs.2,68,025\/- plus<br \/>\n      Rs.11,66,302\/-, total Rs.14,34,327\/-, besides the above two bank<br \/>\n<span class=\"hidden_text\">                                                                             3<\/span><\/p>\n<p>                        MCC No.1224\/08<br \/>\n                        MCC No.1225\/08<\/p>\n<p>     7.5.2010<br \/>\n            guarantees of Rs.20,50,000\/-, out of which one bank guarantee<br \/>\n            bearing No.STA\/161\/05 dated 23-7-2006 has since been<br \/>\n            encashed. The two bank guarantees of Rs.10,25,000\/- each are<br \/>\n            enclosed herewith as Annexure -P-5 &amp; P-6, respectively. That<br \/>\n            bank guarantee contained in Anneuxure P-5 has been<br \/>\n            encashed.&#8221;<\/p><\/blockquote>\n<\/blockquote>\n<blockquote><p>            From the perusal of the aforesaid, it is apparent that there was<br \/>\n     a dispute of amount more than Rs.50,000\/- between the parties<br \/>\n     though in the relief clause, no specific amount has been mentioned.<br \/>\n     From the perusal of the aforesaid paras, there is no iota of doubt that<br \/>\n     the dispute between the parties is existing for more than of<br \/>\n     Rs.50,000\/-, so this Court has rightly rejected the application filed by<br \/>\n     the applicant under section 11(6) of the Act.\n<\/p><\/blockquote>\n<blockquote><p>            In view of the aforesaid, no error apparent on the fact of record<br \/>\n     is found warranting review of the order dated 3.4.2008. These<br \/>\n     applications are found without merit and are dismissed with no order<br \/>\n     as to costs.<\/p><\/blockquote>\n<p>                                                     (Krishn Kumar Lahoti)<br \/>\n                                                            Judge<\/p>\n<p>C.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madhya Pradesh High Court M\/S Bansal Highway Construction vs The State Of Madhya Pradesh on 7 May, 2010 1 MCC No.1224\/08 MCC No.1225\/08 7.5.2010 Shri Sanjay Agrawal, Counsel for petitioner. This order shall decide MCC No.1224\/08 (M\/s Bansal Highway Construction Vs. State of M.P. &amp; others) and MCC No.1225\/08 (M\/s Bansal Highway Construction Vs. State [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,24],"tags":[],"class_list":["post-21530","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Bansal Highway Construction vs The State Of Madhya Pradesh on 7 May, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-bansal-highway-construction-vs-the-state-of-madhya-pradesh-on-7-may-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Bansal Highway Construction vs The State Of Madhya Pradesh on 7 May, 2010 - Free Judgements of Supreme Court &amp; 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