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2005 Supreme(SC) 1446

Supreme court of India
Arijit Pasayat and C.K. Thakkar, JJ.
Orissa Agro Industries Corpn. Ltd. And Others - Appellants
Vs.
Bharati Industries and Others - Respondents
Civil Appeal No.39 of 1999
Decided on : 8th Novermber, 2005

Headnote:

Constitution of India, Article 226 -Maintainability of Writ Petition - Exercise jurisdiction under Article 226 of the Constitution would largely depend upon the nature of dispute- If the dispute cannot be resolved without going into the factual controversy, the High Court should not entertain the writ petition. - The writ petition was primarily founded on allegation of breach of contract- Question whether the action of the opposite party in the writ petition amounted to breach of contractual depends on facts and would require material evidence to be scrutinised and in such a case writ jurisdiction should not be exercised. ( para 9 )

JUDGMENT

ARUIT PASAYAT, J.- Challenge in this appeal is to the judgment rendered by a Division Bench of the Orissa High Court directing the appellant Corporation to pay to Respondent 1 a sum of Rs 8.5 lakhs within a period of three months from the date of order with default stipulation that in case of non-payment the amount shall carry interest @ 12% p.a. after three months. The writ petition filed by Respondent 1 was accordingly allowed.

2. Background facts as projected by the writ petitioner in a nutshell are as follows:

The appellant Corporation for disposal of its unserviceable machineries/ equipments and other scrap materials called for successive tenders on three different dates, but because of low offers cancelled them and Respondent 1 writ petitioner on all these occasions was a tenderer. On the last occasion the writ petitioner offered price of Rs 4950 per metric tonne. However, ultimately on negotiation his offer of a lump sum of Rs 55,00,000 for the entire lot described in the Schedules of the list of articles was accepted. It was stipulated that the entire lifting should be completed by 30-11-1993. The writ petitioner besides the deposit of Rs 2,75,000 being the earnest money was required to deposit Rs 11,00,000 as first instalment being 1I5th of the total price offered by him, which he undisputedly deposited by bank draft dated 27-9-1993. After depositing the amount, according to the writ petitioner when he went to take delivery of the materials he was disappointed to see that many valuable and/or important parts from the truck and jeep, etc. were missing. In respect of some other materials, it was found to have been shifted to the central store. Further, though Items 16, 17 and 18 of Schedule 9 were to be delivered pursuant to the delivery order, they were not available at the store at Kalahandi. So far as Item 32 which related to a "trekker" is concerned the same was found to have been seized by the Bhawanipatna police in connection with some theft case. Instead of facilitating lifting of the materials, for which the money was paid, the officials of the Corporation asked the writ petitioner to deposit the second instalment of Rs 11,00,000 for taking delivery of the second lot of materials and it was given out by them that the question of consideration of release of the vehicle (S1. 32) would be considered only after the second instalment amount was deposited. Surprisingly enough without any response to the various letters of the writ petitioner about such deficiencies sent on different dates, the Corporation by letter dated 2-3-1994 directed the writ petitioner to deposit the balance price amounting to Rs 40,16,000 within a period of fifteen days. The writ petitioner by his letter dated 27-4-1994 gave details of articles which were found missing and also stated that although it had deposited Rs 14,84,000 which included earnest money, it could take delivery of goods only worth Rs 3,75,000, since rest of the materials could not be lifted because of inaction of the functionaries of the Corporation. As no positive response was received, the writ petition was filed.

3. The appellant Corporation filed a counter-affidavit taking the stand that the writ petitioners claim was merely a money claim arising out of alleged breach of contract and, therefore, the writ petition was not a maintainable, since an alternative remedy in the civil court is available. It was further stated that the writ petitioner had taken delivery of materials worth about Rs 14.90 lakhs. The allegations of missing or removal of important valuable parts from the truck and jeep were specifically denied. It was stated that there was no negligence or laches on the part of the Corporation. On the other hand, it was the inaction and ill-motive on the part of the writ petitioner b who wanted to lift the valuable items out of Schedules 1 to 20 of the list of articles. After considering the rival stands the High Court came to a conclusion that since there wer



















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