IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, J.
PCBL Ltd. Formerly Phillips Carbon Black Limited – Appellants
Versus
Gujarat Water Infrastructure Ltd. – Respondent
R/SPECIAL CIVIL APPLICATION NO.1424 of 2023
Decided on : 07-02-2023
Constitution of India, 1950 - Article 226 - Supply of water - Reconnect bulk water supply to unit - Issue a writ of mandamus, order or direction, directing respondent to reconnect bulk water supply to unit of petitioner No.1 – Held, Merely because, pursuant to an NOC granted to petitioners pursuant to some notification issued under Environmental Laws permits petitioners to extract part of its need of water cannot give contract a colour of “a public policy” so as to bring it within jurisdiction of Court to examine certainly can’t Court entertain a petition to compel respondent to renew a contract with an unwilling partner - If Court were to exercise jurisdiction and entertain prayers made in this petition it would clearly be a case of nature of enforcement of a contract between two unwilling partners - For reasons assigned, there is no merit in petition – Petition dismissed.
ORDER :
1. The petitioner No.1 being a Public Limited Company has filed this petition with the following prayers:
(b) The Hon’ble Court may be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction quashing and setting aside the impugned letter dated 24.1.2023 at Annexure P/1, whereby, GWIL has communicated to disconnect the bulk water supply to the Mundra Unit of petitioner No.1 herein, which was being supplied hitherto since the year 2008-2009.”
2. The facts in brief are as under:
* It is the case of the petitioners that on 24.1.2008, a company under respondent No.1 entered into an agreement for bulk water supply. The initial agreement was for a period of five years. It contained a renewal clause stipulating that the agreement can be renewed at the end of five year term for successive term of ten years. Under the agreement, the respondent GWIL was required to supply a monthly amount of water equally a minimum of 0.20 MLD. According to the petitioner, the supply by a subsequent agreement was increased to 0.80 MLD. The contract was renewed on 16.12.2014 effective from 21.4.2014. In accordance with the terms of the agreement, the petitioner was sanctioned to withdraw 1.75 MLD of water. In clause 2 of the agreement, it was specifically stated that the purchaser will purchase a monthly quantity of water that equals the minimum quantity which shall be 80% of the sanctioned quantity i.e. 1400 MLD. It appears that according to the master agreement, according to the petitioners, clause 3.2 thereof provided that the petitioners will purchase a monthly amount of water that equals to the minimum quantity of 0.20 MLD and maximum of 0.52 MLD.
* Terms of the master agreement including clause 5.6 and clause 13.4 thereof provided that the purchaser shall pay for the minimum quantity of water specified in clause 3.2 as the case may be irrespective of the consumption or non consumption of the said amount of water.
* Clause 13.4 provided that in the event the bulk supplier i.e. the respondent was unable to supply the minimum quantity of water, the purchaser will be given a choice of either to receive free of cost within four months consecutive billing cycles the quantity of water or receive credit etc.
* According to the petitioners, on several occasions when the GWIL was not able to supply minimum quantity of water as agreed, GWIL was raising bills only as per actual quantity of water supplied and not as per the minimum quantity of water supplied. According to the petitioners, this was in violation of the agreement and was conveyed to the respondent by letter dated 9.4.2021. A refusal of the GWIL to revise the bills led to a dispute and since the respondent threatened to discontinue the water supply, the petitioners were compelled to pay the entire amounts. For the resolution of the dispute, seeking recourse to the arbitration clause under the agreement an arbitrator was appointed as a result of an order of this Court dated 16.12.2022.
* A subsequent renewal was made for a further period o
Bharati Airtel Limited v. Union of India reported in 2015(12) SCC 1.
Kerala State Electricity Board v. Kurien E Kalathil reported in 2000(6) SCC 293
Joshi Technologies International Inc. v. Union of India reported in 2015(7) SCC 728
Noble Resources Limited v. State of Orissa reported in 2006(10) SCC 236 &
State of U.P. v. Bridge & Roof Company (India) Limited reported in 1996(6) SCC 22
As the contract between the petitioner and the respondent Corporation, an instrumentality of the State, is under the realm of a private law and there is no element of public law, the only course for ....
The court reinforced that the existence of an arbitration clause limits the scope for judicial intervention in contractual disputes involving the state.
The court held that unilateral actions by a public authority that violate contractual obligations are arbitrary and subject to judicial review, allowing for refunds of deposits and payments.
Reimbursement of amount - Entitlement of - Grant of relief of this nature would virtually amount to a money decree. Petitioner is at liberty to take recourse to remedies available by raising such a c....
A writ petition can be dismissed for lack of maintainability if an arbitration clause exists; however, constitutional violations may warrant judicial review.
The court emphasized the importance of honoring contractual agreements and the need for parties to adhere to the terms of the contract. It also highlighted the significance of approaching the compete....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.