Narsi Creation Pvt. Ltd. vs The State Of Uttar Pradesh

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

Miscellaneous Application Nos. 819-820 of 2018 With Interlocutory Application Nos. 35840 & 35841 of 2018 With Interlocutory Application Nos. 175463 & I.A. D.No.175464 of 2018 With Interlocutory Application Nos. 82238 & 83040 of 2022

In

Special Leave Petition (Civil) Nos.15142-15143 of 2012)

Narsi Creation Pvt. Ltd. and Anr. … PETITIONER(S)

VERSUS

State of Uttar Pradesh and Ors. … RESPONDENT(S)

JUDGMENT

KRISHNA MURARI, J.

The present applications have been filed in a Special Leave Petition,

which was disposed of by this Court by way of an order dated 24.08.2012.

While disposing of the matter, a direction was issued for the same to be referred

to arbitration as stipulated in the MoU entered between the parties. In the same Signature Not Verified Digitally signed by order, a further direction was also issued by this Court to maintain status quo till Charanjeet Kaur Date: 2023.04.18 17:16:22 IST Reason:

the Arbitrators entered reference.

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2. Subsequently, as per the directions of this Court, the arbitration

proceedings commenced, and notice was issued to all the parties involved.

Despite notice being served to the applicant herein, they did not appear before

the Ld. Tribunal, and hence the arbitration proceedings commenced without its

presence.

3. Further, during the arbitration proceedings, the Ld. Tribunal passed an

order on 22.02.2015 for maintaining status quo till the disposal of the said

matter, and despite the counsel for the applicant being present in the said

proceedings, raised no objection to the same.

4. The applicant now, after a lapse of several years, through the present

applications, is seeking to vacate the status quo granted by the tribunal, and

further vacate the rights of the SLP petitioner with respect to the disputed

project.

5. We have heard the learned counsel for the parties in great detail.

6. In the present case at hand, the reliefs sought by the applicant through the

present applications are issues that are already pending adjudication before the

Arbitral Tribunal, and no award has been passed regarding the same as of now.

The provisions of the Arbitration and Conciliation Act,1996, as well as a catena

of judicial pronouncements of this Court have time and again stated that the

2 courts normally ought not interfere with arbitral proceedings, especially till the

time an award is not passed.

7. We are further of the opinion that this practice of filing applications in

disposed of SLPs in order to side-step the arbitration process should be

discouraged, and such applications must not be entertained by this Court.

8. In light of the abovementioned discussion, the Miscellaneous Application

and pending IAs stand dismissed. The Parties are at liberty to raise all issues on

merits before the Ld. Arbitral Tribunal which will adjudicate the same in

accordance with law. The Parties are further directed to appear before the Ld.

Tribunal and place a copy of this order before the tribunal for resumption of the

arbitration proceedings. Status-Quo as directed by the Aribtral Tribunal vide

order dated 22.05.2015 to be maintained by the parties till the matter is disposed

of by the Ld. Tribunal.

......................J. (KRISHNA MURARI)

.....................J. (SANJAY KAROL)

NEW DELHI;

18th April, 2023

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