M/S M. Damodaar Reddy, A ... vs The Singareni Collieries Company ...
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         THE HONOURABLE THE ACTING CHIEF JUSTICE
                SRI M.S. RAMACHANDRA RAO

                                        AND

      THE HONOURABLE SRI JUSTICE T. VINOD KUMAR

                         Writ Appeal No.324 of 2021


JUDGMENT:          (Per Sri Justice M.S.Ramachandra Rao)


       This Writ Appeal is preferred challenging the order dt.07.06.2021

passed in Writ Petition No.15900 of 2020 passed by the learned single

Judge.


2.     The said Writ Petition was filed before the learned single Judge

seeking a Writ of Mandamus to declare a letter dt.01.09.2020 passed by

the 3rd respondent advising to withhold Rs.86,27,120/- from the Bills to

be paid in respect of a contract dt.19.11.2018, to recover the said amount

for an alleged defect in contract works carried out by petitioner, and to

set it aside, and for a further direction to the 1st respondent to treat the

existing four contracts of petitioner in Joint Venture with SRICO as

independent and release amounts as agreed on the said contracts in the

interest of justice.

3. Counter-affidavit was filed by respondents opposing the

contentions in the Writ Petition and a specific defence was raised that

there was an arbitration clause No.20 contained in the contract

dt.07.12.2017.

                                                                  HACJ & TVK,J
                                    ::2::                         wa_324_2021

4. While holding that the Writ Petition is not maintainable on the

ground that petitioner has an effective alternative remedy in Clause 20 of

the Agreement, the learned single Judge however gave certain findings

on facts.

5. The counsel for appellant contends that the findings of the learned

single Judge that the remedy of arbitration is an adequate remedy, is not

proper; and the findings recorded by the learned single Judge in the

impugned order are also not correct.

6. Sri J. Sreenivasa Rao, learned Standing Counsel for Singareni

Collieries Company Limited (SCCL), appearing for respondents,

supports the order passed by the learned single Judge.

7. Having given our anxious consideration of the respective

contentions, we are of the opinion that there are several disputed

questions of fact which arise for consideration, and a Writ Petition under

Article 226 of the Constitution of India is not an appropriate remedy to

consider disputes of this nature. When there is an arbitration Clause

No.20 contained in the Agreement providing for dispute resolution

methodology the appellant ought to have availed the said remedy instead

of approaching this Court invoking Article 226 of the Constitution of

India.

8. Having said so, we are also of the opinion that the learned single

Judge ought not to have taken up any contentions on merits having been HACJ & TVK,J ::3:: wa_324_2021

satisfied that there was an effective alternative remedy available to

appellant, and the learned single Judge ought not to have given any

findings on the merits of those contentions raised by the respective

parties in the Writ Petition.

9. Therefore, the Writ Appeal is partly allowed, and the findings /

observations made by the learned single Judge on the merits of

contentions raised by the parties, are set aside.

10. The appellant is granted liberty to avail the alternative remedy of

arbitration under Clause 20 of the Agreement between the parties

referred to supra; and if any such arbitral proceedings are initiated, the

said dispute between the parties shall be adjudicated without reference to

any observations or findings made by the learned single Judge in his

order dt.07.06.2021 passed in Writ Petition No.15900 of 2020.

11. No order as to costs.

12. As a sequel, miscellaneous petitions pending if any in this Appeal,

shall stand closed.

_______________________________ M.S.RAMACHANDRA RAO, HACJ

_______________________ T.VINOD KUMAR, J

Date: 03.09.2021 Ndr