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2021 Supreme(Online)(Guj) 455

GUJARAT HIGH COURT
Mr. A. S. Dave, J
Saiyazmohammad Gulbmohammad Bagwan v. Director of Municipalities
Special Civil Application No.15746 of 2019



Advocates:
For the Appellants/Petitioners: Mr. N. K. Majmudar
For the Respondents: Mr. Tirthraj Pandya

The High Court affirmed that contractual disputes should be resolved through arbitration or civil suits rather than constitutional writ petitions.

Headnote:The intra-Court appeal challenges the order of the single Judge in Special Civil Application No.15746 of 2019 regarding the release of outstanding contractual payments. The appellant claims completion of work without disputes, citing the contract's arbitration clause. The Court finds the petition unmaintainable under Art.226 due to the existence of alternative remedies such as arbitration or civil suit. The appeal is dismissed unanimously for this reason. Appeal dismissed.

Table of Content
1. arguments regarding jurisdiction and claims of completed work. (Para 1 , 2 , 3 , 4 , 5)
2. court's observations on maintaining jurisdiction in contractual disputes. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14)

1. Heard Mr. N. K. Majmudar, learned counsel for the appellant and Mr. Tirthraj Pandya, learned AGP for the respondent - State authorities on advance copy.

2. By way of this intra - Court appeal under Clause 15 of the Letters Patent, the appellant - original petitioner is challenging the order dated 1.10.2019 passed by the learned single Judge in Special Civil Application No.15746 of 2019.

3. Mr. N.K. Majmudar, learned counsel appearing for the petitioner contended that the work as per the tender has already been executed by the appellant and no disputes have been raised by the respondent - Deesa Municipality.
3.1. Mr. Majmudar, learned counsel for the appellant submitted that even though representations have been made, the respondent Municipality has sat tight over the matter. It was further contended that some payment is already made which according to Mr. Majmudar indicates that no disputes are there. Referring to Clause 30 of the tender document, it was also contended by Mr. Majmudar that an arbitration clause for settlement of dispute does exist in the contract between the appellant as a contractor of the Deesa Municipality.

4. From aforesaid ground, it is therefore contended by Mr. Majmudar appearing for the appellant that the learned single Judge has committed an error by not entertaining the petition on the ground of alternative efficacious remedy.

5. Mr. Majmudar has also contended that though as per the settled law, the prayer prayed for may not strictly fall within the jurisdiction of this Court under Art.226 of the Constitution of India , still, however, as there is no dispute, this Court may at - least issue notice in the matter.

6. With the aforesaid grounds, it is contended by Mr. Majmudar, learned counsel for the appellant that the appeal requires consideration.

7. Per contra, Mr. Tirthraj Pandya, learned AGP has submitted that the learned single Judge has rightly not entertained the petition.

8. No other and further submissions are made by the learned advocates for the parties.

9. Before reverting to the submissions made, it is appropriate to reproduce prayers in terms of paragraph No.8 of writ petition i.e. SCA No.15746 of 2019:
"(A) Admit / Allow this petition.
(B) Issue appropriate writ, order or direction and be pleased to direct the respondent authorities including Deesa Nagarpalika to release the payment of outstanding amount of Rs.56.78,577.00 and the same may kindly be paid with 24% interest from 24.05.2018 till actual payment is made by the respondent Deesa Nagarpalika, in the interest of justice;
(C) Issue appropriate writ, order or direction and be pleased to quash and set aside the action of the respondent authority including Deesa Nagarpalika of withholding the payment of outstanding dues of Rs.56,78,577.00 and the action of the Nagarpalika of not releasing the outstanding payment / amount in respect of the work undertaken by the petitioner which was completed in May, 2018 and action of the respondent authorities may kindly be declared as illegal, irrational, illogical, discriminatory, violative of Art.14 of the Constitution of India ;
(D) Grant interim relief and by way of interim order be pleased to direct the respondent authorities to immediately release the outstanding amount of Rs.56,78,577.00 with 24% interest w.e.f. 24.5.2018 till the actual payment is made, pending admission and final disposal of this petition."

10. The bare reading of the prayer prayed for in Paragraph No. 8(B) indicates that it is for release of the payment / recovery of outstanding amount of Rs.56,78,577-00 with 24% interest from 24.5.2018 till the date of actual payment.

11. Even the prayer prayed for in Paragraph No. 8(C) though couched as if there is violation of Art.14 of the Constitution of India in fact, it i






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