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 existence of Clause 24 in the agreement, which mandates arbitration for dispute resolution, was the primary basis for this decision. The Court reasoned that contractual disputes, especially those with a clearly defined arbitration mechanism, should be resolved through the stipulated process rather than by invoking the writ jurisdiction of the High Court. The ratio decidendi is that writ petitions are not the appropriate forum for resolving contractual disputes where a specific alternative remedy, such as arbitration, is contractually provided. Consequently, the petition was dismissed on the ground of alternative remedy.
Facts
The petitioner, M/s Chandra Kishor Singh Govt. Contractor And General Order Supplier, is a contractor engaged in construction work for a hostel project under an agreement with respondent no. 4, the Construction and Design Services U.P. Jal Nigam. A dispute arose between the parties concerning the liability to pay Goods and Services Tax (GST) on the value of the construction work performed. The petitioner contended that the respondents were liable for the GST payment, not the petitioner. 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 contention: The petitioner implicitly argued for the High Court's intervention by filing the writ petition, suggesting that the GST liability dispute warranted direct judicial resolution. No specific arguments regarding the merits of the GST liability or the arbitration clause were recorded. Respondent's contention: The respondents, through their counsel, likely pointed to the existence of the arbitration clause as the appropriate forum for dispute resolution, arguing against the High Court's interference in a matter governed by a contractual arbitration mechanism.
AI-generated summary — verify with the full judgment below
Court No. - 29 Case :- WRIT TAX No. - 1159 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 100 Boys' Hostel GIC, Pratapgarh 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 in the mat
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