Tulsi Narayan Garg Vs. The M.P. Road Development Authority, Bhopal and Ors. Order dated 30 August 2019 in Civil Appeal Nos. 6726 – 6729 of 2019.
The three (3) member bench of Hon’ble Mr. Justice N.V. Ramana, Hon’ble Ms. Justice Indira Banerjee and Hon’ble Mr. Justice Ajay Rastogi (Bench) has reaffirmed the position of law laid down in State of Karnataka v. Shree Rameshwara Rice Mills Thirthahalli 1987 (2) SCC 16,. which stated that a party to an agreement cannot be an arbiter in his own cause.
The Bench observed that if the demand raised by a state authority has been challenged by the contractor and the same is pending adjudication, then initiation of recovery proceedings against the contractor by the concerned state authority at this stage is not justified and cannot be considered as legally sustainable in law.