In Brief
A private company (UPP Tollways) was granted a concession agreement by Madhya Pradesh Road Development Corporation (MPRDC) to develop a state highway. When disputes arose, the company invoked private arbitration under the Arbitration and Conciliation Act, 1996, citing Clause 44.3.1 of the agreement. The State challenged this before the High Court. The Supreme Court held that the right to safe and motorable roads is part of the fundamental right to life under Article 21. Since the agreement constitutes a works contract involving a State entity and a public function (road development), it falls exclusively under the Madhya Pradesh Arbitration Tribunal (1983 Act). The Court ruled that private arbitration clauses cannot override the statutory mandate of specialized forums. The appeal was disposed, directing the company to seek revival of its abandoned reference before the statutory tribunal within two weeks.
The lawyer headnote and full judgment text are available to registered users.