THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
WRIT APPEAL No.1552 of 2014
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. N.Sridhar Reddy, learned counsel for the
appellant. None has appeared for the respondent though the
name of Mr. Javed Razack, learned counsel for the respondent is printed in the cause list.
2. This appeal is directed against the order dated 29.10.2014 passed by the learned Single Judge allowing Writ Petition No.14193 of 2010 filed by the respondent as the writ petitioner.
3. Respondent had filed the related writ petition raising the grievance against the appellant for cancelling the purchase order dated 23.02.2009 and sought for a direction for restoration of the aforesaid purchase order.
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4. The writ petition was contested by the appellant, which was arrayed as the respondent in the writ proceedings. It was contended on behalf of the appellant that dispute between the parties arose out of a contract which should not be adjudicated under Article 226 of the Constitution of India. That apart, it was pointed out that the contract provided for dispute resolution by way of arbitration.
5. Learned Single Judge took the view that the writ petition could be entertained even if the contract is a non-statutory one and even in presence of an arbitration clause. By the order dated 29.10.2014, learned Single Judge directed the appellant to take back the products supplied by the respondent within one (01) month and thereafter to pay the price of the product to the respondent.
5. We find that by order dated 10.12.2014, the appeal was admitted for hearing and order of the learned Single Judge dated 29.10.2014 was stayed.
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6. The parties hereunder were governed by a contract arising out of a Notice Inviting Tender (NIT) for procurement of Oracle ERP products and supporting technology components issued by the appellant.
7. Clause 15 of the tender documents provides for arbitration in the event of any dispute or difference arising out of the above tender notice. Clause 15 reads as under:
"15 Arbitration: In the event of a dispute or difference or difference of any nature whatsoever between the vendor and APSFC during the course of the assignment arising as a result of this order, the same will be referred for arbitration to a Board of arbitration. This Board will be constituted prior to the commencement of the arbitration and will comprise two arbitrators and an umpire. Vendor and APSFC will each nominate an arbitrator to the Board and these arbitrators will appoint the umpire. Arbitration will be carried out at a place mutually decided by Vendor and APSFC."
8. When there is a provision for dispute resolution in a matter of contract by way of arbitration, learned Single Judge ought not to have invoked the writ jurisdiction, instead learned Single Judge ought to have relegated the parties to the forum of arbitration. Present is not only a case of invoking jurisdiction 4 HCJ & CVBRJ W.A.No.1552 of 2014 under Article 226 of the Constitution of India in a contractual dispute but it is a case of entertaining a writ petition when there is a provision for arbitration for dispute resolution. Time and again Supreme Court has reminded us that though the jurisdiction of the High Court under Article 226 of the Constitution of India is wide, nonetheless in matters of contract in the field of private law having no statutory flavour, any dispute arising therefrom should be left to be adjudicated upon by the forum agreed to by the parties. This position has been reiterated by the Supreme Court again in Union of India v. Puna Hindal1.
9. We therefore set aside the order of the learned Single Judge dated 29.10.2014 and dismiss W.P.No.14193 of 2010. However, it would be open to the parties to avail their remedy either under Clause 15 of the contract as extracted above or any other appropriate forum.
10. Writ Appeal is accordingly allowed. However, there shall be no order as to costs.
1 (2021)10 SCC 690
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11. As a sequel, miscellaneous applications pending, if any, in this Writ Appeal, shall stand closed.
__________________________ UJJAL BHUYAN, CJ ___________________________ C.V.BHASKAR REDDY, J Date: 09.11.2022 KL