Point of law: Existence of an arbitration clause cannot be a ground for non maintainability of a writ petition under Article 226 of the Constitution of India. But it is the discretion of the High Court to look into the controversies between the parties and apply its discretion and which doing so if there are very serious nature of disputed facts the parties may be relegated to an appropriate forum.Arbitral Tribunal can decide the issue accordingly and if either of the parties are dissatisfied by the finding of the Tribunal a final decision can be given by a Court under Section 34 of the Arbitration and Conciliation Act 1996.

JUDGMENT :

Heard Mr. K.N. Choudhury, the learned Senior Counsel assisted by Mr. N. Deka, the learned counsel for the petitioners. Also heard Mr. D. Saikia, the learned Advocate General, Assam assisted by Ms. P. Baruah, the learned counsel for the respondent State representing the respondent No. 1 and Mr. D. Baruah, the learned Additional Advocate General, Assam assisted by Ms. N. Upadhayay, the learned counsel for the respondent Nos. 2 and 3.

2. The Nehru Stadium Sports Complex in the heart of the city of Guwahati was accommodated with a guest house named Radha Gobinda Baruah Guest House (RGBGH) which was run by the Board of Sports, Assam, the respondent No. 2. The said Board of Sports, Assam was formed under the National Sports Club of Assam (Taking over of Management and Control) Act, 1977 and as per Section 4 of the said Act, 1977, the Board was vested with all properties, movable or immovable, and all rights, powers and privileges of the said Club which immediately before commencement of this Act belonged to the Club or any other committee or persons and, for the purpose of such management and control, vest in the Board. In the year, 2000, the Board was in a precarious financial condition and the physical condition of the guest house was even worse. The accrued debts of the Board on account of the guest house was about Rs. 1.26 crores including PF and ESI dues of its employees and in that backdrop, a decision was taken to lease out the guest house to a private party through a process of tender, to convert and run the same as a hotel. With the said intent, an advertisement in newspaper was issued by the respondent No. 2. In pursuance of the said advertisement in the newspaper, 5 (five) numbers of private parties came forward to take the Radha Gobinda Baruah Guest House (RGBGH) on lease. For better appreciation the subsequent Cabinet Memorandum circulated under Rule 17 of the Assam Rules of Executive Business, 1968 is extracted herein below:-

“CABINET MEMORANDUM

(CIRCULATED UNDER RULE 17 OF THE ASSAM RULES OF EXECUTIVE BUSINESS)

File No. SYW. 204/98

Sub:- Lease of the Radha Govinda Barua Guest House in Nehru Stadium, Guwahati.

The Radha Govinda Barua Guest House in Nehru Stadium Guwahati is under the care and control of the Board of Sports of Assam. The RGBGH was one of the main sources of income of the BSA till some years ago. Because of the lack of proper administration and management the condition of the B.S.A. has gone from bad to worse. Failure of business accumulated the following debts:-

1. Unpaid salary for 12 months to the staff of the BSA	Rs.42.00 lakhs
2. Irrecoverable loss for food/lodging-	Rs. 24.00 Lakhs
3. Unpaid EPF/LIC/ESI etc and gratuity to retired employees-	Rs.10.00 Lakhs
4. ASEB/GMC/PHE dues-	Rs. 50.00 Lakhs
Total	Rs. 126.00 Lakhs.

Now, the RGBGH has almost become defunct for want of the requisite facilities and practically it yields very small income. Govt. extend financial grant in aid annually to the BSA which cannot cater the requisite need.

The Board of Sports of Assam with a view to make the RGBGH to function fully and yield income to the BSA, after careful consideration decided to give the RGBGH on lease to private party periodically and initially for 20(twenty) years.

After advertisement in News paper, 5(five) nos of private parties come forward to take the RGBGH on lease. After scrutiny the core committee short listed 3 (three) groups. The 3 (three) parties were further reduced to 2 (two) on the basis of offers. These 2 (two) parties are:-

1. Uttam Narayan Sarma (UNS) offered for 30 years with Rs. 80,06,985.60. they agreed to take over the existing 37 nos permanent and 7 nos casual employees of the Guest House under the B.S.A.. They also agreed to make one time payment of Rs. 2.00 lakhs for the use of BAR License.

2. Barua & Co-Pvt. Ltd. (BCPL) (Landmark Ho