Case Note & Summary
The appellant, Ashoka Buildcon Ltd., a construction company, entered into a Build-Operate-Transfer (BOT) contract with the State of Maharashtra for improvements to Ahmednagar-Karmala Road. The contract was executed on 19.02.1999, and the appellant was to collect tolls for a concession period. Disputes arose, and the respondent terminated the contract and took over the road. The appellant filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 before the Principal District Judge, Ahmednagar, seeking appointment of a receiver to collect tolls pending arbitration. The District Court rejected the application on 25.7.2013. The appellant appealed to the Bombay High Court. The High Court considered the facts and arguments, noting that the appellant had a prima facie case, balance of convenience in its favor, and would suffer irreparable loss if the receiver was not appointed. The court allowed the appeal, set aside the District Court's order, and appointed a receiver to collect tolls and deposit them in court. The receiver was directed to submit accounts periodically, and the parties were to bear the receiver's fees equally. The court also disposed of the civil application for interim relief.
Headnote
A) Arbitration - Interim Measures - Section 9 of the Arbitration and Conciliation Act, 1996 - Appointment of Receiver - The appellant contractor sought appointment of a receiver to collect tolls from a BOT road project after the respondent State terminated the contract and took over the road. The District Court rejected the application. The High Court held that the appellant had a prima facie case, balance of convenience in its favor, and would suffer irreparable loss if receiver was not appointed. The court allowed the appeal and appointed a receiver to collect tolls and deposit them in court pending arbitration (Paras 1-10).
Issue of Consideration
Whether the District Court erred in rejecting the application under Section 9 of the Arbitration and Conciliation Act, 1996 for appointment of a receiver to collect tolls pending arbitration, and whether the appellant is entitled to interim relief.
Final Decision
The appeal is allowed. The order dated 25.7.2013 passed by the Principal District Judge, Ahmednagar in Arbitration Application No. 1 of 2013 is set aside. The application under Section 9 of the Arbitration and Conciliation Act, 1996 is allowed. A receiver is appointed to collect tolls from the road and deposit them in the District Court. The receiver shall submit accounts every three months. The parties shall bear the receiver's fees equally. Civil Application No. 11305 of 2013 is disposed of.
Law Points
- Section 9 of the Arbitration and Conciliation Act
- 1996
- Appointment of Receiver
- Interim Measures
- Prima Facie Case
- Balance of Convenience
- Irreparable Loss
