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TMI Blog2005 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... dry Bank Guarantees favoring the Respondent were made available by the Petitioner. Towards the end of 2003 the Petitioner encountered financial difficulties. To overcome this, fresh infusion of capital was sought to be located and procured. A Shareholders Agreement was entered into on 26.8.2004 which, according to the contention of the Petitioners, superseded all previous Agreements. The new investors were assured that the total liability would not exceed ₹ 300 crores, and if it exceeded that figure the liability would be borne by Mr. Siddharth Ray, the promoter of the Petitioner Company. The Petitioner states that Mr. Ray has reneged and defaulted on his assurances and liability and has failed to fulfilll his financial obligations an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Authority v. Anupama Patnaik in which the Apex Court had found it rather strange that a simple claim for money was made in a writ petition and was entertained by the High Court and allowed. There are several disputed questions of fact. Each party is alleging that the other party is guilty of violation of the terms of the allotment. The matter is not covered by any statutory provisions. The writ petition itself was misconceived and ought not to have been entertained. In National Highways Authority of India v. Ganga Enterprises, it has been held that it is settled law that disputes relating to contracts ought not to be entertained under Article 226 of the Constitution. In Barielly Development Authority v. Ajai Pal Singh, the Court had fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction under Article 226 of the Constitution even in respect of contractual dealings of the State or Authority. However no convoluted and contested questions of fact had arisen in those cases with the result that appropriate orders could easily have been passed, as had been done by my Learned Brother Vijender Jain in DSCO Cooperative case. In writ proceedings it would be wholly inappropriate to consider the implementation of the legal principles of First In First Out basis. This would involve looking into the Books of Accounts, the date on which the liability occurred etc. which are matters that should be left for determination either in a civil suit or in arbitral proceedings. 6. This is not a case which justifies or warrants the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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