SC stays AP high court order on arbitration in challan misuse case

Vijayawada: The Supreme Court on Friday stayed AP high court's orders to go for arbitration in the traffic challan amount misuse case. Challenging the order of the high court, the state govt moved the apex court, arguing that arbitration cannot be ordered when criminal proceedings are pending.A case was registered against Data Evolve company and its directors following allegations that the company collected the challans even after the completion of its contract term and diverted Rs 37 crore into personal accounts of those involved in the company. The state govt argued that as the case pertains to misuse of public money, there cannot be any arbitration proceedings in the same. Considering the submissions of the state govt, the Supreme Court said the matter requires detailed hearing and issued notices to Data Evolve company and posted the matter for further hearing to May 25.
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