Swadhi Health Management LLP And Anr. vs. State Of Sikkim And Ors.
Held
The High Court held that the writ petition was not maintainable as factual disputes existed between the parties, and the contract explicitly contained an arbitration clause. The Court disposed of the writ petition, granting the petitioners liberty to pursue their claims through arbitration.
Facts
Swadhi Health Management LLP sought payment of ₹ 5.90 Crores (including GST) from the State of Sikkim for services rendered in administering the Su-Swastha Yojana health scheme for the financial year 2021-22, as per a contract. The State failed to make the payment, prompting the petitioner to file a writ petition seeking a writ of Mandamus.
Key Issues
The key legal issue was whether a writ petition under Article 226 is maintainable for contractual disputes involving factual questions when an alternative remedy, specifically an arbitration clause, exists in the contract.
Sections Cited
Article 226, Section 11(6), Section 11(12)(a)
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF SIKKIM : GANGTOK
(Civil Extraordinary Jurisdiction) DATED : 29th August, 2025
------------------------------------------------------------------------------------------------------------ SINGLE BENCH : THE HON’BLE MRS. JUSTICE MEENAKSHI MADAN RAI, JUDGE ------------------------------------------------------------------------------------------------------------
WP(C) No.04 of 2023
Petitioners : Swadhi Health Management LLP and Another
versus
Respondents : State of Sikkim and Others Writ Petition under Article 226 of the Constitution of India ----------------------------------------------------------------------------------------- Appearance Mr. Munawwar Naseem, Mr. Harish Gaur and Mr. Bhusan Nepal, Advocates for the Petitioners.
Mr. Aarohi Bhalla, Additional Advocate General with Mr. Thinlay Dorjee Bhutia, Government Advocate for the Respondents.
Ms. Charulata Chettri, Legal Officer, Health and Family Welfare Department. ----------------------------------------------------------------------------------------- JUDGMENT Meenakshi Madan Rai, J.
The root of strife between the Petitioners
The judgment continues below.
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