Constitution of India, 1950
Article 226—Writ—Jurisdiction—In contractual matters, the High Courts do not like to exercise extraordinary jurisdiction under Article 226 of the Constitution, even though this power is plenary in nature and not limited by any provision of the Constitution; as normally, when disputed questions of fact arise, adjudication in a civil court is more appropriate, just and fair—Nevertheless, this is not an absolute rule; more so in cases when the orders passed by the government authorities are arbitrary, unfair or unreasonable and where the facts are not in dispute and are easily ascertainable.
[Para 8]
Contract & Tender
Tender for mining lease—Order cancelling provisional acceptance granted in favour of appellant and forfeiting the earnest money—Writ petition filed by appellant to enforce the right to carry on mining operations and in the alternative, refund of the amount, has been dismissed with liberty to file a suit or take any other appropriate action for recovery of amounts—Appeal—Final amount could not be transferred to the designated bank account of respondent on account of a technical glitch in the bank server—Appellant had then spoken on telephone to the office of second respondent and had got a demand draft of balance amount itself—Demand draft was retained by respondents over three months period before it was returned—Earnest money had been forfeited as per condition in the e-auction notice and provisional approval granted to appellant cancelled—Conduct on the part of respondents was arbitrary and erratic—In contractual matters, the High Courts do not like to exercise extraordinary jurisdiction under Article 226 of the Constitution of India, even though this power is plenary in nature and not limited by any provision of the Constitution of India—In view of lapse of time, the present appeal is allowed in order to prevent any further rounds of litigation between parties when the facts on record are crystal clear and do not require a detailed review—Impugned judgment of High Court set aside and respondents directed to refund the earnest money deposited by the appellant.
[Paras 8 & 9]
Decision : Appeal allowed