Madhya Pradesh High Court Pulls Up MP Road Transport Corporation, Says Delay Led To Wastage Of Public Money

The Madhya Pradesh High Court has restored an execution case that had been dismissed for non-payment of process fee, while sharply criticising the prolonged inaction of the Madhya Pradesh Road Transport Corporation in satisfying an arbitral award passed nearly two decades ago. The court observed that the conduct of the public corporation had resulted in a massive escalation of liability due to interest, remarking that such delay ultimately amounts to misuse and wastage of public money.

A division bench of Justice Vivek Rusia and Justice Pradeep Mittal was hearing a petition filed by M/s A R Resource Management Consultants challenging an order of the executing court dated June 16, 2025, which had dismissed the execution proceedings because the petitioner failed to deposit process fee for service upon the respondent. The petitioner argued that the proceedings had already been pending for over a decade and repeated attempts were made to serve the corporation, which consistently failed to respond.

The High court noted that an arbitral award dated October 27, 2008 had directed the corporation to pay Rs 1.50 crore along with interest at 12 percent per annum from March 30, 2004 till the date of the award, and further interest at 18 percent if the amount remained unpaid. A challenge under Section 34 of the Arbitration and Conciliation Act, 1996 was dismissed, after which an arbitration appeal was filed before the High court, where it continues to remain pending.

During the hearing, the bench also examined the sequence of proceedings and noted that in December 2013 the High court had directed the corporation to deposit Rs 50 lakh before the executing court. A subsequent application seeking modification of that order was dismissed in November 2014, and the corporation’s challenge before the Supreme Court through a special leave petition was also dismissed in July 2016.

The State later decided to pay the balance amount subject to the outcome of the pending arbitration appeal. During the pendency of the appeal, the corporation deposited Rs 3,83,00,000 before the executing court, which was subsequently disbursed to the petitioner. When the matter came up again, Managing Director Manish Singh appeared before the court through counsel and produced a demand draft of Rs 3,32,31,838 towards the remaining liability.

Taking note of these developments, the court set aside the order dismissing the execution proceedings and restored the case. It directed the respondent corporation to appear before the executing court on March 10, 2026, along with the demand draft so that the balance amount could be formally deposited. The bench further clarified that the deposited amount shall remain with the executing court and will be released after final disposal of the arbitration appeal.

The court also expressed concern over the long pendency of the arbitration appeal, observing that despite the matter being listed for final hearing, neither side appeared keen to argue it. The bench therefore directed that the appeal be decided preferably within six months. “Let the arbitration appeal be finally decided, preferably within a period of six months from today,” the court ordered.

In strong observations, the High court criticised the approach of the corporation and its officers. The bench noted that despite the decree holder repeatedly paying process fees and pursuing the execution, the respondent had shown little interest in complying with the award. Such conduct, the court said, had directly resulted in mounting interest liabilities on the principal amount.

It further remarked that the situation was particularly troubling because the respondent is a public sector corporation dealing with public funds. “It is very unfortunate that against the awarded amount of Rs 1.50 crore, the corporation is going to pay more than Rs 6 crore,” the bench observed, adding that had the amount been deposited earlier, the burden of interest could have been avoided. The court concluded that the episode reflected “misuse and wastage of public money,” and said responsibility should be fixed on officers.

Case Title: M/S A R Resource Management Consultants v. MP Road Transport Corporation and Others

Date of Order: February 24, 2026

Bench: Justice Vivek Rusia and Justice Pradeep Mittal