IN THE HIGH COURT OF ALLAHABAD
Vivek Kumar Birla, Vikas Budhwar, JJ.
M/s Calstar Steel Ltd. and Another – Petitioners
Versus
North Eastern Railway and Others – Respondents
Writ C No. 7603 of 2022
Decided On : 20-04-2022
Constitution of India, 1950 - Article 226 - Arbitration and Conciliation Act, 1996 - Sections 7, 9, 17, 23 - Arbitration agreement – Power of High court to issue writs - Whether dispute so raised does not involve factual issues which comprise complex questions of fact whose determination requires oral evidence or not – Parliament in exercise of powers as conferred therein enacted an Act by the name in the nomenclature of Arbitration and Conciliation Act, 1996 in order to consolidate and amend the law relating to domestic arbitration, international commercial arbitration (Para 20).
Findings of the Court :
Arbitration and Conciliation Act, 1996 is self contained code wherein not only necessary safeguards have been provided but also jurisdiction has been vested with competent court under Section 9 of Arbitration and Conciliation Act, 1996 and under Section 17 of same so as to warrant interim protection in suitable cases which are filed or pending before it - Thus, apprehension of petitioners that this Court in present proceedings can only be grant interim protection is out of context as specific remedy as discussed above is available to petitioners under Arbitration and Conciliation Act, 1996.
Result : Writ petition is dismissed.
JUDGMENT :
1. This is a petition under Article 226 of the Constitution of India seeking following reliefs :-
(b) Issue a writ, order or direction/declaration in the nature of mandamus or any other appropriate writ, order or direction directing that the Impugned Order dated 30.12.2021 [ANNEXURE NO.XXXIII] is wholly arbitrary, illegal and contrary to well established legal principles and being so also amount to a serious violation of the Fundamental Rights of the Petitioner No.2 and further direct the Respondents to forthwith amend the Agreement dated 05.09.2014 [ANNEXURE No. XV] to include with effect from the year 2016, land admeasuring 1122.59 sq. mtrs. in addition to 5414.40 sq. mtrs. Already allotted in terms of the Joint Inspection Report dated 04.04.2016 [ANNEXURE No.XX]; and
(c) Issue a writ, order or direction in the nature of certiorari or any other appropriate writ, order or direction quashing the Impugned Order dated 30.12.2021 [ANNEXURE No.XXXIII] being wholly arbitrary, illegal and contrary to well established legal principles and amount to a serious violation of the Fundamental Rights of the Petitioner No.2; and
(d) Award costs of the petition and Counsel's fee of the Petitioners.
Perusal of the reliefs as sought in the present writ petition reveals that the petitioners are insisting for writ order or direction/declaration in nature of mandamus or any other appropriate writ order or declaring the order dated 30.12.2021 arbitrary, illegal as well as contrary well established legal principles and in violation of the fundamental rights of the petitioner no. 2 and to further direct the respondents herein to forthwith amend the agreement dated 5.9.2014 so as to include it w.e.f. the year 2016 ad-measuring 1122.59 square meters in addition to 5414.40 square meters already allotted in terms of Joint Inspector Report dated 4.4.2016.
2. As per the pleadings so set forth in the writ petition the petitioner no.1 claims itself to be a company engaged in manufacturing of PSC Sleepers for railways and registered with Government of India, Ministry of Micro, Small and Medium Enterprises as a MSME.
3. Petitioners have further pleaded that for the purposes of manufacturing Brand Gauge Monoblock Concrete Sleepers contract was executed on 27.4.1998 between the Railway Board on one hand and the petitioner no.1 on the other hand. It has further been pleaded that from time to time fresh contracts have been entered into on 31.12.2002, 14.12.2009 and 11.6.2019.
4. Agreements were also executed between the respondents herein and the petitioners from time to time including the agreement dated 5.9.2014 which finds place at page 278 of the paper book containing Clause 23 at page 281.
5. Heard Sri Uday Gupta through online mode assisted by Sri Ravi Kant and Sri Adarsh Bhushan, learned counsels for the petitioners and Sri Krishna Agarwal learned counsel for the respondents.
6. Learned counsels for the petitioners have argued that certain dispute arose with respect to the land so allotted to them for manufacturing BG PSC sleepers and excess possession of the land beyond the land allotted to them entailed to correspondence being exchanged from time to time.
7. As per learned counsels for the petit
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Point of Law : Parliament in exercise of powers as conferred therein enacted an Act by the name in the nomenclature of Arbitration and Conciliation Act, 1996 in order to consolidate and amend the law....
Court exercising jurisdiction under Article 226 of the Constitution of India is also a Court of Equity It will have to be mindful of interests of justice and ensure that in rigidly applying technical....
The main legal point established in the judgment is that the dispute fell within the ambit of the arbitration clause in the contract and that the public law remedy was not required as an effective pr....
The court affirmed that contractual obligations must be honored when supported by competent authority approvals and committee recommendations, reinforcing the binding nature of such decisions.
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