Arbitration in Construction Disputes: Rajendra Kumar Tekriwal vs. M/S Unique Constrn. P. Ltd.

The case of RAJENDRA KUMAR TEKRIWAL vs. M/S UNIQUE CONSTRN.P.LTD. & ORS. revolves around a dispute related to a construction agreement, which was referred to arbitration. The Supreme Court provided clarity on the role of the arbitrator and the rights of parties involved in the arbitration proceedings.

Background of the Case

The appellant and respondents were involved in a dispute related to a construction project, which was referred to arbitration. During the proceedings, Respondent No.3 contended that he was not a necessary party in the arbitration, raising jurisdictional concerns. The Supreme Court was approached to determine whether Respondent No.3 should be excluded from arbitration and to address interim relief matters.

Legal Proceedings and Key Issues

During the hearing, the Court noted that the Arbitrator was already handling the disputes between the parties. The main appeal and a cross-appeal filed by Respondent No.1 were dismissed.

Supreme Court’s Judgment

The Supreme Court ruled:

“Though the respondent No.3 has raised some contentions before this Court that he is not a necessary party before the Arbitrator, it is for the Arbitrator to take a call on that submission, since he is already before the Arbitrator.”

The Court further directed that all parties could raise their respective contentions before the Arbitrator. The Court vacated the interim order dated February 25, 2010, which had imposed certain restrictions on the parties.

Directions to the Arbitrator

• The Supreme Court requested the Arbitrator to conclude the proceedings expeditiously, preferably within six months.
• The Court clarified that if any party entered into a transaction during the arbitration process, the sale proceeds would be subject to the outcome of the arbitration.
• In response to the appellant’s concerns about valuation disputes, the Court held that the appellant was free to take appropriate legal action.

Conclusion

This judgment underscores the importance of arbitration as a dispute resolution mechanism in construction-related cases. It reiterates that jurisdictional challenges should be addressed within arbitration and that courts should avoid unnecessary intervention. By directing the Arbitrator to proceed with the case, the Supreme Court reinforced the efficiency of the arbitration process in commercial disputes.

The appeal and cross-appeal were dismissed, with no costs awarded.

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Download Judgment: Rajendra Kumar Tekri vs MS Unique Constrn. Supreme Court of India Judgment Dated 17-02-2016-1741852695685.pdf