The paper describes a new and rigorous mathematical model using counter-EMF for the rotor field oriented system with induction motor which uses the estimated speed and rotor flux based on a Model Reference Adaptive System as well as the real-time approach. The estimated speed and rotor flux is used for the speed and flux feedback control. The stability and the convergence of the estimator are improved on the basis of hyperstability theory for non-linear systems. The validity of the proposed method is verified by simulation and also the sensorless control was tested on the propulsion system simulator used for the development of Korean High-Speed Railway Train