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2011 (7) TMI 1308

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..... was quashed. Brief facts of the case are that respondent No. 1 was allotted "B" site Retail outlet by the appellant-Corporation in the year 2004 for running a petrol pump. Respondent No. 1 made the land available to the appellant- Corporation after taking the same on the basis of a registered lease deed dated 3.12.2003, between the petitioner (the lessee) and one Suresh Kumar (the lessor) for a period of 55 years @ ₹ 4,000/- per month. The Retail Outlet was commissioned in February 2004. Till 18.1.2006, the status of the respondent No. 1 /petitioner was that of a lessee of Suresh Kumar. But on 19.1.2006, the respondent No. 1/petitioner purchased the entire land from Suresh Kumar vide sale deed No. 1246 dated 19.1.2006. On th .....

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..... oner in view of the express stipulation of the dealership agreement to the effect that for the determination of any dispute/ claim or to judge the legality of any act or omission under the Dealership Agreement, the same shall be referred for decision to an Arbitrator under the Arbitration and Conciliation Act, 1996. 3. The Learned Single Judge, in the course of considering the merits of the issue agitated by the parties, came to the conclusion that availability of an alternate efficacious remedy cannot bar the constitutional right provided to a citizen to approach the High Court for redressal of its grievance occasioned due to violation of his right, statutory or otherwise. The Ld. Single Judge, after considering the relevant law, further .....

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..... njan Singh v. Union of India" involving similar controversy concerning arbitration clause wherein it was held 'that a written contract that spells out a mechanism for resolution of dispute cannot be skirted for whatever reason by invoking a writ jurisdiction and dismissal of the writ petition does not mean that the petitioner has no remedy for alleged infringement of fundamental right but it only to deflect the petitioner to an appropriate remedy by recourse of procedure under the Arbitration and Conciliation Act, 1996.' The learned counsel for the appellant has also canvassed before us the grounds which have been taken in the memorandum of appeal to urge that the judgment of the learned Single Judge is not sustainable in law. .....

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..... Court, we are unable to find ourselves in agreement with the reasoning arrived at by the Learned Single Judge in so far as the maintainability of the civil writ petition is concerned. Hon'ble the Supreme Court in Harbanslal Sahnia and Another v. Indian Oil Corpn. and Others AIR 2003 SC 2120, has observed as under :- So far as the view taken by the High Court that the remedy by way of recourse to arbitration clause was available to the appellants and therefore the writ petition filed by the appellants was liable to be dismissed. Suffice it to observe that the rule of exclusion of writ jurisdiction by availability of an alternative remedy is a rule of discretion and not one of compulsion. In an appropriate case in spite of availability .....

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..... 22.2.2008 and 2009 (154) PLR 110, one of which was rendered by a Division Bench of which one of us (M.M. Kumar, J.) was a member. It has been held that the existence of an Arbitration Clause would ordinarily bar the invoking of the writ jurisdiction of the High Court. Another judgment delivered by the learned Single Bench of this Court in CWP No. 17443 of 2009 decided on 11.1.2009, also affirms the settled proposition of law that exceptions apart, in case there exists an arbitral clause in an agreement, the parties must be relegated to that remedy. 10. Mr. Amar Vivek, learned counsel for respondent No. 1/petitioner has placed firm reliance on a judgment rendered by Hon'ble the Supreme Court in the case of Tantia Construction Pvt. Ltd. .....

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..... justice where it lies unfairness, unreasonable, injustice and patent illegality(s) are various facets. There is no difficulty to exercise jurisdiction if principles of natural justice have not been followed or the conscious of the Court suffers a shock. In this case transaction is commercial in nature and there are allegations/counter allegations concerning breach of contract. In such cases functions of an arbitration clause is more pronounced and significant. It is not possible for the Court to fathom the in justice because neither there is any patent illegality nor there is any violation of fundamental rights. Therefore, we have no hesitation in rejecting the aforesaid submission of the learned counsel. 12. In view of the above discussio .....

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