M/S Chandra Kishor Singh Govt. Contractor And General Order Supplier vs. The Director, Construction And Design Services U P Jal Nigam And 4 Others
Held
The Court held that it would not interfere in the matter due to the availability of an alternative remedy. The judgment explicitly states that Clause 24 of the agreement between the petitioner and the respondents provides for the resolution of disputes through arbitration. Given this contractual provision for arbitration, the High Court found no reason to exercise its writ jurisdiction. The principle guiding this decision is that writ courts generally do not entertain disputes that can be adequately resolved through alternative, contractual mechanisms like arbitration, especially when such mechanisms are clearly stipulated in the agreement. Therefore, the petition was dismissed on the ground of the availability of an alternative remedy.
Facts
The petitioner, M/s Chandra Kishor Singh Govt. Contractor And General Order Supplier, is a contractor engaged in the construction of an Officers Hostel in Police Line, Allahabad, under an agreement with respondent no. 4, The Director, Construction And Design Services U. P. Jal Nigam. A dispute arose between the parties regarding the liability to pay Goods and Services Tax (GST) on the value of the construction work performed. The petitioner contended that the respondents, not the petitioner, were liable for the GST payment. The agreement between the parties contained a clause, Clause 24, which stipulated arbitration as the mechanism for resolving such disputes.
Key Issues
1. Whether the High Court should entertain a writ petition concerning a contractual dispute regarding GST liability when an alternative remedy of arbitration is available under Clause 24 of the agreement? Petitioner's Argument: The petitioner's argument is not explicitly recorded in the judgment. However, by filing the writ petition, it is implied that the petitioner sought direct intervention from the High Court to resolve the GST liability dispute. Respondent's Argument: The respondents' argument is not explicitly recorded in the judgment. However, their presence and the court's decision suggest they may have implicitly or explicitly pointed to the existence of the arbitration clause as the appropriate forum for dispute resolution.
AI-generated summary — verify with the full judgment below
Court No. - 29 Case :- WRIT TAX No. - 1158 of 2018 Petitioner :- M/S Chandra Kishor Singh Govt. Contractor And General Order Supplier Respondent :- The Director, Construction And Design Services U P Jal Nigam And 4 Others Counsel for Petitioner :- Shailesh Kumar Shukla,Sheo Kinkar Singh Counsel for Respondent :- Pranjal Mehrotra Hon'ble Pankaj Mithal,J. Hon'ble Saral Srivastava,J. The petitioner is a contractor who has been granted a contract for construction of Officers Hostel in Police Line, Allahabad by the Construction and Design Services U.P. Jal Nigam, respondent no.
The parties have entered into an agreement for the above purpose. A dispute has arisen between the parties to the contract as to who is liable to pay GST on the value of the construction work done under the contract. The petitioner alleges that the liability to pay the GST is upon the respondents and not upon it. The aforesaid dispute is one concerning the agreement between the petitioner and the respondents, which vide Clause 24 provides for resolution of such disputes by Arbitration. In view of the aforesaid remedy available to the petitioner for seeking an arbitration, we are not inclined to interfere i
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