M/S Divakar Construction And Suppliers vs. State Of U.P. And 7 Others
Held
The Court held that it was not inclined to interfere in the matter by invoking powers under Article 226 of the Constitution of India, given the availability of an arbitration clause in the contract. The reasoning was that the contract itself provided a mechanism for dispute resolution through arbitration. Therefore, the Court directed the petitioner to invoke Clause 4 of the contract to initiate arbitral proceedings for the redressal of their grievances. The writ petition was dismissed in limine.
Facts
The petitioner, M/s Divakar Construction and Suppliers, filed a writ petition seeking payment for work assigned on contract, specifically mentioning labour charges and GST. The respondents had made partial payment, but the final bill remained unsatisfied. The contract contained a clause stipulating that any disputes or differences arising under the contract would be settled through arbitral proceedings.
Key Issues
1. Whether the High Court should entertain a writ petition under Article 226 of the Constitution of India when the contract between the parties contains an arbitration clause for dispute resolution? Petitioner's contention: The petitioner sought a writ for payment of outstanding dues, implying a need for judicial intervention to secure payment. The specific mention of labour charges/GST suggests these were the disputed amounts. Respondent's contention: The respondent authorities likely relied on the existence of the arbitration clause as a bar to writ jurisdiction, arguing that the dispute should be resolved through the contractual mechanism.
AI-generated summary — verify with the full judgment below
Chief Justice's Court Case :- WRIT - C No. - 20501 of 2018 Petitioner :- M/S Divakar Construction And Suppliers Respondent :- State Of U.P. And 7 Others Counsel for Petitioner :- Phool Chandra Singh,Sumitra Singh Counsel for Respondent :- C.S.C.,Hemendra Kumar Mishra Hon'ble Govind Mathur,Chief Justice Hon'ble Saurabh Shyam Shamshery,J.
This petition for writ is preferred to have an appropriate writ, order or direction for the respondent -authorities to make the payment of the work assigned on contract relating to labour charges/GST.
It is submitted that the respondents have made part payment of the dues but the complete final bill has not been satisfied.
Clause -4 condition and details relating to contract provides that any dispute or difference between or liabilities of the parties or any matter arising out under the contract shall be settled through arbitral proceedings.
Looking to the availability of the arbitration clause aforesaid, we are not inclined to interfere in the matter, while invoking the powers under Article 226 of the Constitution of India.
The petitioners may invoke clause 4 aforesaid to have the arbitral proceedings for redressal of his grievances.
The peti
The judgment continues below.
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