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Supreme Court of India

KAMLAKAR BHIMRAO PATILversusMAHARASHTRA INDUSTRIAL DEV. CORPN.

Citation
2009 INSC 80
Decided
28 January 2009
Disposal
Disposed off

Holding

A writ petition challenging the Corporation's decision to repudiate a contract is maintainable under Article 226, and the High Court's dismissal is set aside.

Summary

The appellant, a director of M/s Everest Realtors Private Ltd., deposited money for land allotted by the Maharashtra Industrial Development Corporation (the Corporation) but the Corporation later sent a letter refusing to consider the allotment and returned the pay orders without giving any reason. The appellant filed a writ petition under Article 226 challenging the Corporation's decision to repudiate the contract. The Bombay High Court dismissed the writ petition, holding that the dispute was for a civil court. The Supreme Court held that the writ petition was maintainable because it questioned the corporate decision to repudiate the contract, not merely a civil dispute, and set aside the High Court order, directing that the writ petition be restored for merits. No opinion on the merits was expressed, and the parties were directed to appear before the High Court for further proceedings.

Issues considered

  • The writ petition under Article 226 is maintainable when the grievance is the corporate decision to repudiate a contract for land allotment.
  • Whether the dispute is exclusively within the jurisdiction of a civil court, thereby ousting the jurisdiction of the High Court under Article 226.

Legislation cited

Subjects

Writ petitionArticle 226Contract repudiationLand allotmentMaharashtra Industrial Development CorporationCivil court jurisdictionMaintainability

Judgment

                                 [2009] 1 S.C.R. 665


                           KAMLAKAR BHIMRAO PATIL                              A
                                          v.
                  MAHARASHTRA INDUSTRIAL DEV. CORPN.
                       (Civil Appeal No. 477 of 2009)
                                JANUARY 28, 2009
                                                                               B
                  [DR. ARIJIT PASAYAT AND ASOK KUMAR
                               GANGULY, JJ.]

                Contribution of India, 1950 :... Article 226 - Writ Petition
           - Maintainability of - Order by State Industrial Development        c
           Corporation that request for allotment of land would not be
           considered even though money was deposited - Writ petition
           - Dismissal of, by High Court on the ground that civil court
 ..        competent to entertain such dispute - On appeal, held: Since
           the subject matter of challenge was decision by Corporation         D
      ~
           to repudiate the contract, writ petition was maintainable -
           Thus, order of High Court set aside - Writ Petition to be
           restored for disposal on merit.

                CIVIL APPELLATE JURISDICTION : Civil Appeal No. 477
                                                                               E
           of 2009.

-#
               From the Judgment and Order dated 31/1/2006 of the High
           Court of Judicature at Bombay in Writ Petition No. 9315 of
      )(   2005.
                                                                               F
              V.A. Bobde, V.A. Mohta, Rajshekhar Govilkar, Naveen
           Chawla, Mayank Bughani and T. Mahipal for the Appellant.

               Shyam Diwan and Fox Manda! and Co., for the
           Respondent,
                                                                               G
               The Judgment of the Court was delivered by
      ~
               ARIJIT PASAYAT, J.1. Leave granted.

                                         665                                   H
    666           SUPREME COURT REPORTS             [2009] 1 S.C.R.


A      2. Challenge in this appeal is to the order passed by a
  Division Bench of the Bombay High Court dismissing the writ
  petition filed. The writ petition was filed by the appellant
  questioning legality of the order passed by the Maharashtra
  Industrial Development Corporation (in short the 'Corporation')
B dated  30.3.2005.

          3. Background facts in a nutshell are as follows:

          By Resolution dated 17.8.2004 a decision was taken for
     allotment of land at a particular price. The money was
c    deposited on 9.3.2005 but letter dated 30.3.2005 was written
     to M/s. Everest Realtors Private Ltd. intimating them that the
     request for allotment of land in the Airoli, Navi, Knowledge/
     Apparel Park cannot be considered. The pay orders submitted
                                                                                ...
     along with letter dated 9.3.2005 were returned. According to
D the appellant no reason or basis has been indicated and the
     High Court misconstrued the prayer in the writ petition as if it   --
     was for enforcement of specific performance of contract with
     the Corporation. The appellant has categorically stated that the
     subject matter of challenge was the impugned decision taken
cL.. by the Corporation to repudiate the contract. The High Court
     erroneously, according to the appellant came to hold that it can
     be considered by a civil court of competent jurisdiction.                   ..
      4. Learned counsel for the appellant further submitted that       )(

  no reason has been indicated as to why the Corporation
F decided not to go ahead with the contract.

       5. Learned counsel for the Corporation on the other hand
  submitted that the Corporation decided not to take any note of
  the payments made by M/s. Everest Realtors Private Ltd. In fact
G the Resolution earlier related to the present appellant.
                                                                         j...
         6. It is clarified by learned counsel for the appellant that
    he is a Director of the Pvt. Ltd. Co. and therefore, the reasons
    indicated have no relevance.
H         7. We find that this is a case which could have been
          KAMLAKAR BHIMRAO PATIL v. MAHARASHTRA ·                    667
        INDUSTRIAL DEV. CORPN. [DR. ARIJIT PASAYAT, J.]

      decided by the High Court and therefore we set aside the              A
      impugned order of the High Court. The writ petition shall be
      restored for disposal on merit. To avoid unnecessary delay, let
      the parties appear before the High Court on 9.2.2009. The
      Hon'ble Chief Justice of the High Court is requested to direct
      listing of the petition before an appropriate bench. It is made       B
      clear that we have not expressed any opinion on the merits of
      the case. Till 9.2.2009 no third parties' interest shall be created
      by the Corporation. It is open to the High Court to pass such
      interim orders during the pendency of the writ petition as the
      circumstances warrant.                                                c
             8. The appeal is accordingly disposed of.

...   N.J.                                        Appeal disposed of.


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