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Supreme Court of India 2019-08-30 allowed

Tulsi Narayan Garg, Sarawagi Mohalla, Sheopur Through its Proprietor Tulsi Narayan Garg vs M.P. Road Development Authority, Bhopal & Others

Bench: 3 — Rastogi

In Brief

A contractor disputed liquidated damages claimed by the road development authority after contract termination and filed for arbitration. While the arbitral tribunal hearing was pending, the authority initiated recovery proceedings under land revenue law. The Supreme Court held that once a dispute is pending before an arbitral tribunal, the contract authority cannot initiate recovery proceedings without awaiting the arbitrator's decision, as this would violate the principle that a party cannot be judge in its own cause. The Court set aside the High Court's judgment and allowed the appeal.

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Contract Law Arbitration Liquidated Damages Administrative Law Recovery Proceedings Dispute Resolution

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