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Patna High Court

Ramesh KumarversusM/S Shriram Transport Finance Company Ltd.

Decided
Disposal
DISPOSED

Holding

The court held that the writ petition is not maintainable because the petitioner has an alternative remedy under Section 34 of the Arbitration and Conciliation Act, 1996, and therefore dismissed the petition.

Summary

The petitioner Ramesh Kumar filed a writ petition seeking a certiorari writ to set aside an ex-parte arbitration award dated 09-10-2020, alleging that the arbitrator passed the award without giving notice, violating natural justice. The petition claimed the award was issued under clause 15 of the loan‑cum‑hypothecation agreement without hearing the petitioner. The respondents argued that the petitioner has an alternative statutory remedy under Section 34 of the Arbitration and Conciliation Act, 1996 to challenge the award. The court examined whether a writ petition is maintainable when a specific appeal under the Arbitration Act is available. It held that the existence of the Section 34 remedy precludes the writ petition and directed the petitioner to pursue that avenue. Consequently, the writ petition was dismissed and the matter was disposed of.

Issues considered

  • Whether a writ petition under Article 226 is maintainable when an alternative remedy of filing an appeal under Section 34 of the Arbitration and Conciliation Act, 1996 exists.
  • Whether an arbitration award can be set aside on the ground of violation of natural justice without prior notice to the parties.

Legislation cited

Subjects

  • Arbitration
  • Certiorari
  • Natural Justice
  • Section 34
  • Writ Petition
  • High Court
  • Award Setting Aside

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.15114 of 2025
                 ======================================================
                 Ramesh Kumar S/o Hirdyanand Singh, Resident of Ward No. 4, Koilwar, P.O.
                 and P.S.- Koilwar, District- Bhojpur- 802160.

                                                                     ... ... Petitioner/s
                                                Versus
           1.    M/S Shriram Transport Finance Company Ltd. Representation through its
                 Manager, Arrah Branch.
           2.    Kumar Abhay Parmar, Branch Manager, Shriram Transport Finance
                 Company Ltd., Kalira Mod, P.S.- Arah Nawada, District- Bhojpur.
           3.    Regional Business Head, Shriram Transport Finance Company Ltd., Patna
                 (Bihar).
           4.    Nirbhay Kumar, S/o Brij Bihari Prasad, Resident of Village- Koilwar, P.S.-
                 Koilwar, District- Bhojpur, Pin- 802160.
           5.    The State of Bihar Through The Principal Secretary,Govt.of Bihar, Patna.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :        Mr. Vijay Kumar Mishra, Adv.
                 For the Respondent/s   :        Mr. Government Advocate (2)
                                                 Ms. Renu Kumari, Adv.
                 For the State          :        Mr. Rajan Prakash, Adv.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

2   13-01-2026                   Heard the learned counsel for the parties.

                                 2. This writ petition has been filed for the following

                   relief(s):-

                                                      “1.    That    this   certiorari   writ
                                            application is being filed for setting aside the
                                            ex-party order dated 09.10.2020 passed in
                                            Arbitration Case saab No.AR/11/2020 by the
                                            Arbitration Tribunal at Patna whereby and
                                            whereunder learned Vijay Kant Jha (Retd.)
                                            A.D.J. Sole Arbitrator Veena Mart Complex,
                                            Near Bandhan Bank Ashiyana Digha Road,
                                            Ashiyana, Patna-800025 has been made this
Patna High Court CWJC No.15114 of 2025(2) dt.13-01-2026
                                            2/3




                                  Arbitration     Award   as    per     letter   dated
                                  02.03.2020 in view of clause 15 of the
                                  Agreement for Arbitration to settle the dispute
                                  interms of loan-cum-Hypothecation Agreement
                                  with respect to the breach and violation of terms
                                  and condition mentioned in the agreement
                                  executed by the Borrower and guarantor in
                                  favour of the Chairman Company without giving
                                  full      opportunity    of         hearing      the
                                  respondent/petitioner which is violation of
                                  Natural Justice. Further in the nature of
                                  mandamus for issuance of direction to the
                                  company to settle the issue on compromised
                                  based.”



                      3. Learned counsel appearing on behalf of the

          petitioner submits that the petitioner has approached this

          Hon’ble Court by way of the present writ petition challenging

          the award dated 09.10.2020. Learned counsel has stated that the

          authority without issuing any notice to the petitioner has passed

          the impugned award. Learned counsel has, therefore, prays this

          Hon’ble Court to set aside the award and remand the matter

          back to the arbitrator for passing orders afresh duly putting all

          the parties on notice and giving him an opportunity of filing

          their objections/ explanation.

                      4. Per contra, the learned counsel appearing on behalf

          of the Respondent No. 2 has vehemently opposed the very
             Patna High Court CWJC No.15114 of 2025(2) dt.13-01-2026
                                                         3/3




                       maintainability of the present writ petition. Learned counsel has

                       stated that the petitioner is having an alternative and effective

                       remedy for filing a miscellaneous appeal under Section 34 of the

                       Arbitration Act against the award dated 09.10.2020. Learned

                       counsel submits that the petitioner can take all the grounds that

                       he has raised in the miscellaneous appeal. Learned counsel has,

                       therefore, prayed this Hon’ble Court to dismiss the present writ

                       petition.

                                   5. Having regard to the fact that the petitioner has an

                       alternative and effective remedy of filing a miscellaneous appeal

                       under Section 34 of the Arbitration Act against the award passed

                       by the arbitrator, this Court is not inclined to entertain the

                       present writ petition. The present writ petition is disposed of

                       granting liberty to the petitioner to approach the appropriate

                       authorities/court under Section 34 of the Arbitration Act against

                       the award dated 09.10.2020, if he is so advised.

                                   6. With the above directions, the present writ petition

                       stands disposed of.



                                               (A. Abhishek Reddy , J)
Gauravkr/-

U


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