The petitioners challenged the concurrent findings of the Trial Court and the Madhya Pradesh High Court, which had decreed a 1998 suit in favor of the Respondent (Madhya Pradesh Electricity Board) for the recovery of outstanding hire charges, depreciation value, and ongoing monthly compensation for two hired tractor trailers, while dismissing the petitioners’ counter-claim.
Without conducting a detailed re-appreciation of the facts, the Supreme Court exercised its equitable jurisdiction to bring a three-decade-old litigation to a quietus. The Court modified the decree by fixing the final lump-sum liability at ₹62,00,000 as full and final satisfaction of the Respondent’s claims, directing the release of the accumulated amounts already deposited by the petitioners across the different court registries.
1. Factual Background
On April 22, 1992, the Madhya Pradesh Electricity Board (the plaintiff) entered into a hire contract with M/s Shivhare Roadlines Pvt. Ltd. (the defendants). Under this agreement, two tractor trailers belonging to the plaintiff were hired out to the defendants:
- One tractor trailer had a capacity of 100 metric tonnes at a monthly hire rate of ₹55,000.
- The second tractor trailer had a capacity of 50 metric tonnes at a monthly hire rate of ₹35,000.
While the defendants initially paid the hire charges regularly, they stopped making payments from June 1994, asserting that they were providing services directly to the plaintiff and were entitled to a waiver. Due to non-payment of the outstanding hire dues, the plaintiff filed a recovery suit on August 1, 1998.
The defendants denied the claims and filed a counter-claim worth ₹73,19,372 for unpaid transportation bills, which the plaintiff opposed. Evidence led before the Trial Court revealed that the tractors were manufactured in America (1982) and the trailers in India (1979). Crucially, the fitness certificates for the vehicles had expired in 1991 and 1992, and the plaintiff had not renewed them because it intended to sell the fleet on an “as is where is basis”.
2. Lower Courts’ Adjudication
- Trial Court (Judgment dated July 30, 2011): Decreed the suit in favor of the plaintiff. It ordered the defendants to pay the depreciated value of the vehicles (₹23,02,932.28), outstanding rent (₹23,56,752) with 6% interest per annum, and monthly compensation of ₹90,000 with 6% interest from the date of the suit until the return of the vehicles. The defendants’ counter-claim was dismissed as time-barred.
- High Court of Madhya Pradesh: The defendants filed a first appeal under Section 96 of the Code of Civil Procedure, 1908. The Single Judge re-considered the matter, upheld the Trial Court’s decree, and dismissed the appeal.
3. Supreme Court’s Analysis and Mediation Attempt
Aggrieved by the High Court’s affirmation, the petitioners approached the Supreme Court. Upon issuing notice, the Supreme Court directed the parties to attempt a resolution via mediation and ordered the defendants to deposit ₹20,00,000 to stay execution of the decree.
Although the mediation process ultimately failed, the Senior Advocates representing both sides agreed to submit to an equitable order from the Court to permanently put an end to the protracted legal battle.
The Bench took note of several critical factors:
- The vintage of the vehicles (manufactured in 1979 and 1982) and the long-expired fitness certificates.
- The fact that the litigation had dragged on for nearly 30 years.
- The total amounts already secured during the appellate stages. Specifically, the defendants had deposited ₹12,00,000 before the High Court, ₹20,00,000 with the Supreme Court registry on February 27, 2026, and an additional ₹30,00,000 pursuant to a subsequent apex court order dated April 30, 2026.
4. Final Order and Relief
The Supreme Court concluded that the interests of justice would be fully met by awarding a consolidated sum of ₹62,00,000 to the plaintiff to completely wrap up the dispute.
The Special Leave Petition was disposed of with the following operational directives:
- The plaintiff (Respondent) is held entitled to a total amount of ₹62,00,000 towards full satisfaction of the Trial Court’s decree in Civil Suit No. 6-B/2006.
- The Respondent is permitted to withdraw the ₹12,00,000 (along with any accrued interest) currently lying in deposit with the Madhya Pradesh High Court in First Appeal No. 893 of 2011.
- The Registry of the Supreme Court is directed to release the remaining ₹50,00,000 (along with accrued interest) in favor of the Respondent.
- Each party was left to bear their own costs.
2026 INSC 556
M/S Shivhare Roadlines Pvt. Ltd. And Anr. V. Madhya Pradesh Electricity Board (D.O.J. 26.05.2026)




