MRS. SANJANA M. WIGversusHINDUSTAN PETRO CORPORATION LTD.

A                            MRS. SANJANA M. WIG
                                          v.
                   HINDUSTAN PETRO CORPORATION LTD.

                              SEPTEMBER 15, 2005

B                    [S.B. SINHA AND C.K. THAKKER, JJ.]


          Constitution of India, 1950:

          Article 226-Writ petition-Maintainability of-Alternate remedy-
C Availability of-Scope and ambit ofjudicial review vis-a-vis availability of
    alternative remedy-Petitioner entered into a dealership agreement with
    Company-Said agreement terminated due to defaults made in payment by
    petitioner-High Court dismissed writ petition in limine on the ground of
    existence of an arbitration clause in the agreement-Correctness of-Held:
D   Exercising of discretionary jurisdiction would not be refused solely on the
    existence of an alternative remedy which is more efficacious-If the forum
    chosen by the party is not in a position to grant appropriate relief a writ
    petition may be entertained-A writ petition may also be entertained if it
    involves a public law character-In the instant case, since the petitioner made
    defaults in payment and the dealership agreement stood terminated, no
E   interference is called/or-Specific Relief Act, 1963, S. 14.

         The appellant-firm and the respondent entered into a dealership
    agreement. The agreement was terminated on the death of one of the
    partners of the firm. However, the dealership was allowed to continue
F   having regard to a representation made by the appellant. Ultimately, the
    agreement was terminated on the ground of defaults made by the
    appellant. The High Court dismissed the appellant's writ petition in /imine
    on the ground that there existed an arbitration clause in the agreement.
    Hence the appeal.

          On behalf of the appellant, it was contended that the arbitrator had
G
    no jurisdiction to pass an award in relation to restoration of possession
    to the appellant by the respondent and, therefore, the High Court ought
    to have entertained the writ petition.

          Dismissing the appeal, the Court
H                                        190
             SANJANA M. WIG v. HINDUSTAN PETRO CORPORAT!ON LTD.          191
      HELD: I. The principal question which arises for consideration is         A
as to whether a discretionary jurisdiction would be refused to be exercised
solely on the ground of existence of an alternative remedy which is more
efficacious. Ordinarily, when a dispute between the parties requires
adjudication of disputed question of facts wherefor the parties are required
to lead evidence both oral and documentary which can be determined by           B
a domestic forum chosen by the parties, the Court may not entertain a
writ application. (196-C-D-E)

     State of H.P. v. Gujarat Ambuja Cement Ltd., (2005) AIR SCC 3727,
followed.

      Harbanslal Sahnia v. Indian Oil Corporation Ltd, (2003] 2 SCC 107,        C
State of U.P. v. Mohammad Nooh, (1958) SCR 595, A. V. Venkateswaran v.
Ramchand Sobhraj Wadhwani, (1962) 1 SCR 753, State of U.P. v. Bridge &
Roof Company (India) Ltd., (1996) 6 SCC 22, Seth Chand Ratan v. Pandit
Durga Prasad, (2003) 5 SCC 399, Asgar S. Patel v. Union of India, (2000) 5
SCC 311, Mis. Titagarh Paper Mills Ltd. v. Orissa State Electricity Board,      D
[10751 2 SCC 436, Mis. Bisra Stone Lime Co. Ltd. v. Orissa StateE/ectricity
Board, Affi (1976) SC 127, AB/ International Ltd v. Export Credit Guarantee
Corporation of India Ltd, JT (2003) 1 SC 300 and Whirlpool Corporation
v. Registrar of Trade Marks, (1998) 8 SCC 1, relied on.

     2. However, access to justice by way of public law remedy would not        E
be denied when a tis involves public law character and when the forum
chosen by the parties would not be in a position to grant appropriate relief.
                                                                  [196-E-F)

      3. However, there cannot be any doubt whatsoever that the question
as to when such a discretionary jurisdiction is to be exercised or refused      p
to be exercised by the High Court has to be determined .having regard to
the facts and circumstances of each case wherefor, no hard and fast rule
can be laid down. [197-E-FI

     Mis. Titagarh Paper Mills Ltd v. Orissa State Electricity Board, [10751
2 SCC 436 and Mis. Bisra Stone Lime Co. Ltd v. Orissa State Electricity         G
Board, AIR (1976) SC 127, referred to.

      4.1. It may be true that in a given case when an action of the party
is de hors the terms and conditions contained in an agreement as also
beyond the scope and ambit of the domestic forum therefor, the writ
petition may be held to be maintainable; but indisputably therefor such a       H
    192                      SUPREME COURT REPORTS [2005) SUPP. 3 S.C.R.

A case has to be made out. (198-C-D-E-F)
          E. Venkatakrishna v. Indian Oil Corporation, (2000) 7 SCC 764 and
    Indian Oil Corporation Ltd. v. Amritsar Gas Service, (1991] SCC 533, relied
    on.

B         4.2. The arbitrator may not have the requisite jurisdiction to direct
    restoration of distributorship having regard to the provisions contained
    in Section 14 of the Specific Relief Act, 1963; but while entertaining a writ
    petition even in such a case the court may not lose sight of the fact that if
    a serious disputed question of fact is involved arising out of a contract
C   qua contract, ordinarily a writ petition would not be entertained. A writ
    petition, however, will be entertained when it involves a public law
    character or involves a question arising out of public law functions on the
    part of the respondent. (198-D-E-F)

          S. In a case of this nature, while exercising a plenary jurisdiction,
D   one must take the supervening circumstances into consideration. The
    par~ies admittedly invoked the arbitration agreement before the
    arbitrator. They entered into a settlement. Pursuant to or in furtherance
    of the said settlement, the appellant was to pay a certain sum unto the
    respondent in five instalments with interest. The appellant for violation
    of the terms of contract presumably prayed for award of damages but no
E   reference thereto has been made in the award. In any event such a claim
    of damages could have been made before the arbitrator on the ground of
    alleged breach of contract. (198-F-G-HJ

         6. The appellant admittedly committed a default in payment of dues
    towards supplies made and having regard to the fact that the dealership
F   agreement has come to an end, this is not a fit case where the impugned
    order requires to be set aside and the High Court directed to dispose of
    the writ petition afresh. (199-C-DI

          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7337 of2004.

G        From the Judgment and Order dated 29.4.2004 of the Bombay High
    Court in W.P. No. 830 of 2004.

         Uday Umesh Lalit, U.A. Rana, S.R. Tejpal, K.S. Merchant and M.
    Singhal for Mis. Gagrat and Co. for the Appellant.

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           SANJANAM. WIGv. HINDUSTANPETROCORPORATIONLTD. [S.B.SINHA,J.]         193
      L. Nageshwara Rao, Sanjay Kapur and Shubhra Kapur with him for the               A
 Respondent.

       The Judgment of the Court was delivered by

        S.B. SINHA, J. The scope and ambit of judicial review vis-a-vis
  availability of alternative remedy is in question in this appeal which arises        B
  out of a judgment and order dated 29.04.2004 passed by a Division Bench
· of the High Court of Bombay in Writ Petition No.830 of 2004 whereby and
  whereunder the writ petition filed by the Appellant herein was dismissed in
 Iimine.

       The Appellant herein and one Smt. Bimladevi T. Obhan, who were                  C
 partners in 'M/s Tilak Automobiles' and the Respondent herein entered into
 a dealership agreement. Admittedly the said agreement was terminated by the
 Respondent herein by a notice dated 19.03.2004 in terms of Clause 55 of the
 said agreement which reads thus :

           "55. Notwithstanding anything to the contrary herein contained, the         D
           Corporation shall be at liberty to terminate this Agreement forthwith
           upon or at any time after the happening of any of the following,
           namely :-

           (A) If the Dealer shall commit a breach of any of the covenants and
               stipulations contained in the Agreement, and fail to remedy such        E
               breach within four days of the receipt of a written notice from
               the Corporation in that regard;

           (B) Upon

               (i) The death or adjudication as insolvent of the Dealer, ifhe be       p
                   an individual;

               (ii) The dissolution of the partnership of the dealers firm or the
                     death or adjudication as insolvent of any partner of the firm
                   · if the Dealer be a firm.

               (iii) The liquidation, whether voluntary or otherwise or the passing
                                                                                       G
                     of an effective resolution for the winding up, if the dealer be
                     a company or a co-operative society."

       According to the Respondent, the said agreement came to an end on the
 death of the said Bimladevi. However, the dealership was allowed to continue          H
      194                     SUPREME COURT REPORTS (2005] SUPP. 3 S.C.R.

A having regard to a representation made by the Appellant herein that the firm
    '" had certain outstandings in the market which were in danger of becoming
       unrecoverable, 'if the supplies were suddenly stopped'. The Respondent agreed
       to continue supplies to the Appellant on purely ad hoc basis.

            The Respondent alleging violation of various conditions of the said
B agreement, namely, (I) low sales volume of the dealership; (2) sales
     p,erformance; (3) dry outs at the outlet; and (4) no active interest/participation
     in operation of the dealership, issued a show cause notice dated 20.12.2002
     as to why suitable action should not be taken for gross violation of clauses
     9, 42, 44 and 55(a) of the said dealership agreement dated 09.02.200().
c       A further notice was issu~d to the Appellant by the Respondent on
  7.11.2003 drawing its attention to the defaults made by her and warned that
  any future default would be viewed seriously and very stringent action will
  be taken. Thereafter, allegedly a further default occurred and, thus, on the
  grounds stated in the notice dated 20.12.2002 as also on the ground of default,
D the agreement was terminated in terms of a notice dated 19 .03 .2004.
          The Appellant contended that on 19.03.2004 itself at about 5.00 p.m.,
    the staff members of the Respondent along with the police authority forcibly
    entered the premises of the partnership firm and while handing over the said
    notice, the staff members thereof were forcibly ousted from the business
E • premises.
           The writ petition filed by the Appellant herein, as noticed hereinbefore,.
      was dismissed in limine by the impugned order.

           Mr. Uday Umesh Lalit, the learned Senior Counsel appearing on behalf
F    of the Appellant, at the outset drew our attention to the subsequent events
     which took place, namely, that referral of the disputes and differences between
     the parties were referred to an arbitrator on 07 .06.2004 and consequent passing
     of a consent award by him which reads as under :

             "In terms of statement of settlement dated December 15, 2004, I pass
G            the award as follows :
             5.1 Net payable amount of Rs.431416.39 as agreed to by both the
                 parties plus interest of Rs.33170 from l.4.04 till 31.12.04
                 aggregating to Rs. 464586/- shall be paid by the Respondent to
                 the Claimant.
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       SANJANA M. WIG v. HINDUSTAN PETRO CORPORATION LTD. [S.B. SINHA, J.]   J95
       5.2 In view of the financial difficulties of the Respondent, the above A
           amounts shall be paid in 5 instalments with the first installment
           commencing in the first week of Jan. 05 and the last installment
           to be paid in the last week of March 05.
       5.3 Interest at the rate of 12% per annum will be payable for any
           default i.e. amount outstanding to be paid as 3 lst March, 05 by        B
           the Respondent to the Claimant.
       5.4 All the claims of both the Claimant and the respondent which are
           contrary to or other than the aforesaid terms of settlement are
           rejected.
       5.5 The award is given without prejudice to any rights and contentions C
           in respect of Special Leave Petition pending with the Hon 'hie
           Supreme Court."

       Mr. Lalit would contend that the High Court committed a manifest
error in dismissing the said writ petition in limine on the premise that there
existed an arbitration clause in the agreement, without considering the question D
that the arbitrator had no jurisdiction to pass an award in relation to the said
second prayer made by the Appellant herein, namely, restoration of possession
to her by the Respondent.

       The learned counsel would submit that a public law remedy cannot be E
held to be not available to a person aggrieved only on the ground of existence
of an arbitration clause; although fundamental right at the hands of the State
is alleged to have been breached. It was further submitted that from the chain
of events, it would appear that the Respondent had condoned the lapses on
the part of the Appellant in the matter of alleged violations of the conditions
of the agreement and only insisted on payment of the alleged dues in terms F
of its notice dated 07 .11.2003 . It was urged that in terms of clause 9, the
Appellant was entitled to three months' notice. In support of his aforementioned
contentions, Mr. Lalit placed strong reliance on E. Venkatarishna v. Indian
Oil Corporation and Anr., [2000] 7 SCC 764, Indian Oil Corporation Ltd
v. Amritsar Gas Service and Ors.• [1991] l SCC 533, Harbanslal Sahnia and G
Anr. v. Indian Oil Corporation Ltd. and Anr., (2003] 2 SCC 107 and State
of H.P. and Ors. v. Gujarat Ambuja Cement Ltd. and Anr, (2005) AIR SCW
3727

     Mr. L. Nageshwara Rao, the learned Senior Counsel appearing for the
Respondent, on the other hand, would contend that as the High Court exercises H
    196                     SUPREME COURT REPORTS [2005) SUPP. 3 S.C.R.

A a discretionary jurisdiction under Article 226 of the Constitution of India;
    refusal to entertain a writ petition on the ground of existence of an alternative
    remedy should not be interfered with by this Court. The learned counsel
    submitted that the agreement having stood terminated by reason of the death
    of one of the partners, the petitioner was not entitled to claim any right of
B   property in the premises in question and in that view of the matter this Court
    should not interfere with the impugned order. Mr. Nagheshwara Rao, in this
    behalf, placed strong reliance on The State of Uttar Pradesh v. Mohammad
    Noah, [1958] SCR 595; A. V. Venkateswaran, Collector of Customs, Bombay
    v. Ramchand Sobhraj Wadhwani and Anr, [1962] l SCR 753; State of UP.
    and Ors. v. Bridge & Roof Company (India) Ltd., [1996] 6 SCC 22; Seth
C   Chand Ratan v. Pandit Durga Prasad (D) By LRs. and Ors., [2003] 5 SCC
    399 and Asgar S. Patel and Ors. v. Union of India and Ors., [2000] 5 SCC
    311.

          The principal question which arises for consideration is as to whether
    a discretionary jurisdiction would be refused to be exercised solely on the
D   ground of existence of an alternative remedy which is more efficacious.
    Ordinarily, when a dispute between the parties requires adjudication of disputed
    question of facts wherefor the parties are required to lead evidence both oral
    and documentary which can be determined by a domestic forum chosen by
    the parties, the Court may not entertain a writ application. [See Mis Titagarh
E   Paper Mills Ltd. v. Orissa State Electricity Board and Anr., [1975] 2 SCC
    436 and Mis Bisra Stone Lime Co. Ltd. etc. v. Orissa State Electricity Board
    and Anr., AIR (1976) SC 127].

         However, access to justice by way of public law remedy wouid not be
    denied when a lis involves public Jaw character and when the forum chosen
p   by the parties would not be in a position to grant appropriate relief.

         A Division Bench of this Court in ABL International Ltd. and Anr. v.
    Export Credit Guarantee Corporation of India Limited and Ors., JT (2003)
    1O SC 300,. observed that in certain cases even a disputed question of fact can
    be gone into by the court entertaining a petition under Article 226 of the
G   Constitution of India, holding :

            "28. However, while entertaining an objection as to the maintainability
            of a writ petition under Article 226 of the Constitution of India, the
            court should bear in mind the fact that.the power to issue prerogative
            writs under Article 226 of the Constitution is plenary in nature and
H
       SANJANA M. WIG v. HINDUSTAN PETRO CORPORATION LTD. [S.B. SINHA, J.]   J97
       is not limited by any other provisions of the Constitution. The High A
       Court having regard to the facts of the case, has a discretion to entertain
       or not to entertain a writ petition. The Court has imposed upon itself
       certain restrictions in the exercise of this power. (See Whirlpool Corpn.
       v. Registrar of Trade Marks) And this plenary right of the High Court
       to issue a prerogative writ will not normally be exercised by the B
       Court to the exclusion of other available remedies unless such action
       of the State or its instrumentality is arbitrary and unreasonable so as
       to violate the constitutional mandate of Article 14 or for other valid
       and legitimate reasons, for which the Court thinks it necessary to
       exercise the said jurisdiction."
                                                                                   c
      In Harbansla/ Sahnia (supra), Lahoti, J, (as His Lordship then was),
relied upon Whirpool Corporation v. Registrar of Trade Marks, (1998] 8
SCC 1 observing that in an appropriate case, in spite of availability of the
alternative remedy, the High Court may still exercise its writ jurisdiction in
at least three contingencies : (i) where the writ petition seeks enforcement of D
any of the fundamental rights; (ii) where there is failure of principles of
natural justice; or (iii) where the orders or proceedings are wholly without
jurisdiction or the vires of an Act is challenged.

      We may, however, notice that the Bench did not notice the earlier
decisions in Mis Titagarh Paper Mill Ltd., (supra) and Mis Bisra Stone Lime        E
Co. Ltd., (supra). However, there cannot be any doubt whatsoever that the
question as to when such a discretionary jurisdiction is to be exercised or
refused to be exercised by the High Court has to be determined having regard
to the facts and circumstances of each case wherefor, no hard and fast rule
can be laid down.
                                                                                   F
      A three-Judge Bench of this Court in Gujarat Ambuja Cement Ltd.
(supra), referring to Harbansla/ Sahnia, (supra) held :

       ",,,There· are two well recognized exceptions to the doctrine of
       exhaustion of statutory remedies. First is when the proceedings are G
       taken before the forum under a provision of law which is ultra vires,
       it is open to a party aggrieved thereby to move the High Court for
       quashing the proceedings on the ground that they are incompetent
       without a party being obliged to wait until those proceedings run
       their full course. Secondly, the doctrine has no application when the
       impugned order has been made in violation of the principles of natural H
    198                      SUPREME COURT REPORTS [2005] SUPP. 3 S.C.R.

A           justice. We may add that where the proceedings itself are an abuse of
            process of law the High Court in an appropriate case can entertain a
            writ petition.

                25. Where under a statute there is an allegation of infringement
            of fundamental rights or when on the undisputed facts the taxing
B           authorities are shown to have assumed jurisdiction which they do not
            possess can be the grounds on which the writ petitions can be
            entertained. But normally, the High Court should not entertain writ
            petitions unless it Js shown that there is something more in a case,
            something going to the root of the jurisdiction of the officer, something
c           which would show that it would be a case of palpable injustice to the
            writ petitioner to force him to adopt the remedies provided by the
            statute."

          It may be true that in a given case when an action of the party is
    de 'hors the terms and conditions contained in an agreement as also beyond
D the scope and ambit of domestic forum created therefor, the writ petition may
    be held to be maintainable; but indisputably therefor such a case has to be
    made out. It may also be true, as has been held by this Court in Amritsar Gas
    Service (supra) and E. Venkatakrishna, (supra), that the arbitrator may not
    have the requisite jurisdiction to direct restoration of distributorship having
E   regard to the provisions contained in Section 14 of the Specific Relief Act,
    1963; but while entertaining a writ petition even in such a case, the court may
    not lose sight of the fact that if a serious disputed question of fact is involved
    arising out of a contract qua contract, ordinarily a writ petition would not be
    entertained. A writ petition, however, will be entertained when it involves a
    public law character or involves a question arising out of public law functions
F   on the part of the respondent.

           But in a case of this nature, while exercising a plenary jurisdiction, we
    must take the supervening circumstances into consideration. The parties
    admittedly invoked the arbitration agreement before the arbitrator. They entered
G   into a settlement. Pursuant to or in furtherance of the said settlement, the
    Appellant herein was to pay a sum of Rs. 4,64,586 unto the Respondent in
    five instalments with interest. The Appellant herein for violation of the terms
    of contract presumably prayed for award of damages but no reference thereto
    has been made in the award. In any event such claim of damages CO\Jld have
    been made before the Arbitrator on the ground of alleged breach of contract.
H
   SANJANA M. WIG v. HINDUSTAN PETRO CORPORATION LTD. [S.B.SINHA, J.]        J99
      We are further of opinion that in this matter no case has been made out       A
for grant of a relief of restoration of the dealership. The contract stood
terminated on the death of the Appellant's partner. No case of novation of
contract has been made out. It is also not the case of the parties that any other
or further agreement between the parties came into being. The arrangement
was an ad hoc one. The Appellant did not derive any legal right to continue
the business for an indefinite period. Moreover, she allegedly violated the         B
terms of the contract.

       It may be true that the said award has been made without prejudice to
the interest of the parties in this appeal; but keeping in view the admitted fact
that the Appellant committed a default in payment of dues towards supplies          C
made and having regard to the fact that the dealership agreement has come
to an end, we are of the opinion that it is not a fit case where we would set
aside the impugned order of the High Court and direct it to dispose of the
writ petition afresh.

      For the reasons aforementioned, there is no merit in this Appeal which        D
is dismissed accordingly. However, in the facts and circumstances of the
case, there shall be no order as to costs.

v.s.s.                                                       Appeal dismissed.

                                                                                    E