M/S Modern Builders vs The State Of Madhya Pradesh

The Supreme Court held that the provisions of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 do not apply when there is an arbitration clause in the contract, as established under Section 7 of the 1983 Act and Section 11(6) of the Arbitration and Conciliation Act, 1996. The Court emphasized that objections regarding the jurisdiction of the arbitrator must be raised at the appropriate stage, and since the respondents did not challenge the appointment of the arbitrator earlier, the award could not be annulled based on jurisdictional grounds. The High Court's decision to set aside the award was thus overturned, affirming the validity of the arbitration process initiated by the appellant.