M/S TULSI NARAYAN GARG vs THE M.P. ROAD DEVELOPMENT AUTHORITY

The Supreme Court upheld the High Court's judgment dismissing the appellant's petitions challenging the recovery of liquidated damages under clause 53.1 of the work agreement, stating that the quantification of damages by the General Manager was valid despite pending arbitration under Section 7 of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983. The Court emphasized that the initiation of recovery proceedings does not impede the arbitration process. The outcome affirmed the authority's actions in recovering the assessed damages.