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2026 Supreme(Online)(Mad) 37140

IN THE HIGH COURT OF JUDICATURE AT MADRAS
T.V.Thamilselvi, J
Federation of Motor Sports Clubs of India (FMSCI) – Appellant
Versus
Blue Band Sports Private Limited – Respondent
CRP No. 2287 of 2026|CMP No. 9904 of 2026|CMP No. 9906 of 2026



Advocates:
For the Appellants/Petitioners: MS.Kadambri Suresh, MR.S.V.Pravin Rathinam
For the Respondents: Mr.R.Lakshmi Ratan, Mr.V.Raghavachari Senior Counsel, Mr.S.Saravanan

Article 227 supervisory jurisdiction not invocable to strike plaint when trial court remedies and arbitration procedure under S.8 available.

Headnote:The judgment addresses disputes under a Memorandum of Understanding (MOU) containing an arbitration clause (Clause 23), where the plaintiff filed a suit (OS No. 367/2026) seeking interim injunction for alleged breaches, including conducting a rally without fair opportunity. The court found the suit maintainable as arbitration was not invoked under S.8 of the Arbitration and Conciliation Act, 1996, and Article 227 supervisory jurisdiction inapplicable due to available trial court remedies. Facts involve subsisting MOU dated 20.04.2022, suppression claims, and injunction granted on prima facie materials. Issues framed include suit maintainability given arbitration clause, invocation of Article 227 to strike plaint, and effectiveness of alternative remedies. Ratio decidendi emphasizes Article 227 is supervisory, exercised sparingly for jurisdictional errors only, not for factual inquiries like plaint rejection or arbitration applicability, which trial courts handle; relied on Supreme Court precedent limiting Article 227 when remedies exist. Civil Revision Petition dismissed; interim stay vacated.

Table of Content
1. challenge to suit maintainability due to arbitration clause in mou. (Para 1 , 2 , 3)
2. respondent objects to article 227; alternative remedies exist. (Para 4 , 5 , 6)
3. article 227 supervisory, not for trial court factual issues. (Para 7 , 8 , 9 , 10)
4. crp dismissed, stay vacated. (Para 11)

Order

Challenging the very filing of the suit in OS No. 367 of 2026 on the file of Principal District Munsif Court, Coimbatore, the 1st defendant has preferred the present Civil Revision Petition contending that the suit is not maintainable. According to the revision petitioner, in view of the terms of the Memorandum of Understanding (MOU), particularly the arbitration clause, the plaintiff ought not to have approached the Civil Court and the suit itself is liable to be struck off.

2. The learned counsel for the revision petitioner submitted that the plaintiff, by suppressing material facts and contractual obligations, obtained an order of interim injunction in I.A. No. 2 of 2026 in the said suit. It is further contended that the trial Court granted the injunction without assigning proper reasons.

3. Placing reliance on Clause 23 (Arbitration) of the MOU, it is submitted that any dispute between the parties ought to be resolved only through arbitration, and therefore, the institution of the suit amounts to an abuse of process of law. On these grounds, the petitioner seeks to strike off the plaint by invoking the jurisdiction of this Court under Article 227 of the Constitution of India.

4. Per contra, the learned counsel for the 1st respondent/plaintiff raised a preliminary objection as to the maintainability of the present revision petition. It is submitted that the petitioner cannot invoke the supervisory jurisdiction of this Court under Article 227 to strike off the plaint, especially when an effective remedy is available before the trial Court. It is further contended that the contractual relationship between the parties is still subsisting and has not been terminated.

5. The learned counsel for the 1st respondent/plaintiff further submitted that the revision petitioner violated the terms of the MOU by proceeding with the 49th South India Rally, scheduled on 17.04.2026, without affording a fair opportunity and despite issuance of show cause notice. In such circumstances, the respondent/plaintiff was constrained to approach the trial Court seeking interim injunction, which was granted upon consideration of prima facie materials. It is also contended that the revision petitioner, after obtaining interim stay from this Court, proceeded to conduct the rally and derived benefit therefrom. Therefore, the present revision petition is not maintainable and is liable to be dismissed.

6. In support of his submissions, the learned counsel for the respondent relied upon the judgment of the Hon’ble Supreme Court in P.Suresh Vs. D.Kalaivani & Ors reported in 2026 Supreme(SC)13, wherein it has been held that when an effective alternative remedy is available, invocation of the extraordinary jurisdiction under Article 227 is not warranted. The relevant paragraphs are extracted hereunder:

“5.1.1. The reserve of exceptional poser of judicial intervention is not to be exercised just for granting of relief in individual cases but should be directed for the promotion of public confidence in the administration of justice. It is emphasized that though the power under Article 227 may be unfettered, its exercise is subject to high decree of judicial discipline. The Court observed in Shalini Shyam Shetty (supra), The power of interference under Article 227 is to be kept to the minimum to ensure that the wheel of justice does not come to halt and the foundation of justice remains pure and unpolluted in order to maintain public confidence in the functioning of the tribunals and courts subordinate to the High Court’

... ...

6.2.3. As far as the ground of correction of valuation for supplying of the stamp paper is concerned, the proviso mentions that time m

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