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N. V. ANJARIA, KRISHNA S. DIXIT
BBP Studio Virtual Bharat Pvt. Ltd. – Appellant
Versus
Selvakumar. S – Respondent
JUDGMENT :
Preferred under Section 4 of the Karnataka High Court Act, 1961, the two appeals arise from the judgment and order dated 25.01.2023 passed by learned Single Judge in Writ Petition No.21308 of 2022. Writ Appeal No.1095 of 2023 is filed by the Invest Karnataka Forum who was original respondent No.2, whereas in the other writ appeal, original respondent No.1-State of Karnataka is the appellant.
2. Both the appellants are aggrieved by the judgment and order which contained the following operative directions,
(ii) The impugned communication dated 25-10-2022 issued by the 3rd respondent stands quashed.
(iii) A mandamus issues to the 1st respondent/ State to release balance payments due to the petitioner in terms of its invoice dated 27.10.2022.
(iv) The petitioner is at liberty to seek arbitration of any other dispute that remains unresolved, apart from what is considered in the case at hand.”
2.1 In the writ petition, following prayers are made,
Writ jurisdiction is not appropriate for resolving contractual disputes, especially when an arbitration clause exists in the agreement.
An assignment agreement is valid and enforceable where parties have acted under the agreement, and lack of counterclaims against payment liability affirms this position.
A State entity must act in accordance with principles of fairness and justice in contractual obligations, and cannot withhold payments without a clear determination of dues, as this constitutes arbit....
The extraordinary jurisdiction of this Court can be exercised in view of the admission made by the 3rd respondent regarding payments to be payable to the petitioner.
Contractual agreement - Whether existence of arbitral agreement between parties that High Court of Delhi alone will have jurisdiction to try dispute arising out of contract is enforceable in law - Un....
The court reinforced that the existence of an arbitration clause limits the scope for judicial intervention in contractual disputes involving the state.
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