IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, L.S. PIRZADA, JJ.
Innova Captab Limited – Appellant
Versus
Gujarat Medical Service Corporation Limited and Others – Respondents
Special Civil Application Nos. 9790, 9899, 9917 of 2025
Decided On : 06-10-2025
| Table of Content |
|---|
| 1. petitioner seeks payment for invoiced amounts. (Para 1) |
| 2. petitioner argues illegal deductions by corporation. (Para 5 , 9 , 10) |
| 3. court notes actions impacting payments lacked notice. (Para 18) |
| 4. recovery actions violated principles of natural justice. (Para 20 , 22) |
| 5. existence of arbitration clause does not bar writ petition. (Para 21 , 23 , 24) |
| 6. court directs payment of outstanding amounts with interest. (Para 26) |
JUDGMENT :
A.S. SUPEHIA, J.
1. By way of present writ petition, the petitioner-Company, in Special Civil Application No.9917 of 2025, has sought for the following reliefs:
“A. Your Lordships may be pleased to admit and allow this application;
B. Your Lordships may be pleased to pass an appropriate writ, order or direction directing the Respondent no.1 to pay the petitioner, the full amount of Rs. 29,32,349/- towards clearance of invoices along with the interest at the rate of 18% in the interest of justice;
C. Pending admission and final hearing of the petition, Your Lordships may direct the respondent no.1 to pay the total outstanding amount of Rs.29,32,349/- along with the interest as this Hon’ble Court deems fit in the interest of justice;
D. Pending admission and final hearing of the Petition, Your Lordships may direct the respondent no.1 to not deduct any amount in future invoices raised by the petitioner without following due process of law; **”
1.1 The petitioner – Company, in Special Civil Application No.9899 of 2025, has sought for the following reliefs:
“A. Your Lordships may be pleased to admit and allow this application;
B. Your Lordships may be pleased to pass an appropriate writ, order or direction directing the Respondent no.1 to pay the petitioner, the full amount of Rs. 2,70,410 /- towards clearance of invoices along with the interest at the rate of 18% in the interest of justice.
C. Pending admission and final hearing of the petition, Your Lordships may direct the Respondent no.1 to pay the total outstanding amount of Rs.2,70,410/- along with the interest as this Hon’ble Court deems fit in the interest of justice;
D. Pending admission and final hearing of the Petition, Your Lordships may direct the Respondent no.1 to not deduct any amount in future invoices raised by the petitioner;
*** ”
1.2 The petitioner-Company, in Special Civil Application No.9790 of 2025, has sought for the following reliefs:
A. Your Lordships may be pleased to admit and allow this application:
B. Your Lordships may be pleased to pass an appropriate writ, order or direction directing the Respondent no.1 to pay the petitioner, the full amount of Rs. 3,66,292/- towards clearance of invoices along with the interest at the rate of 18% in the interest of justice.
C. Pending admission and final hearing of the petition, Your Lordships may direct the Respondent no.1 to pay the total outstanding amount of Rs.3,66,292/- in the interest of justice;
D. Pending admission and final hearing of the Petition, Your Lordships may direct the Respondent no.1 to not deduct any amount in future invoices raised by the petitioner without following due process of law.
*** ”
2. RULE. Learned advocates appearing for the respective respondents waives service of notice of rule. The affidavit-in-reply tendered by learned advocate Mr.Sharma dated 06.10.2025, is ordered to be taken on record.
3. Since a short issue is involved, the matters are taken up for final hearing today.
4. At the outset, learned advocate Mr. Digant Popat appearing with learned advocate Mr.Bhavik P. Shah for the petitioner, has submitted that the present matter was left out and de-tagged from Special Civil Application No.8535 of 2025, on the request of learned advocate Mr.Utkarsh Sharma appearing for the respondent for want of the affidavit and since the said writ petition was actually allowed by quashing and setting aside the action of the respondents vide judgment and order dated 30.09.2025, the present writ petition may also be allowed in terms of the said judgment. However, learne
AI
The court ruled that the respondent's unilateral deductions from payments violated principles of natural justice, requiring adherence to contract clauses and valid justification for any recovery acti....
The court reaffirmed that deductions from contracts must adhere to principles of natural justice, requiring prior notification and justification for any recovery actions.
Writ jurisdiction under Article 226 cannot adjudicate disputes arising from contracts or address complex questions of fact needing evidence.
The court upheld that a party must substantiate any claims under an arbitration agreement with credible evidence; failure to do so results in rejection of claims under the risk and expense clause.
The court established that communications regarding outstanding dues do not equate to recovery orders, especially when a civil suit on the same matter is pending.
Unilateral deductions from contractual payments without notice violate principles of natural justice and are illegal under Article 14 of the Constitution.
The court emphasized the importance of fulfilling payment obligations in a contract and upheld the principle that breach of payment obligations justifies refusal to make further deliveries.
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