Published on: October 23, 2023 at 16:00 IST
Court: Supreme Court of India
Citation: Orissa State Financial Corpn. V. Narsingh Ch. Nayak (2003)
Honourable Supreme Court of India has held that High Courts must refrain from entertaining petition for alteration / management / disputes of the contracts between the parties while exercising its jurisdiction under aegis of Article 226 of the Constitution of India. It is held that High Court must not ignore the scope of the writ petition and nature of the dispute such as pertaining to contractual obligations between the parties and issue such directions annulling the existing contract and introducing a fresh contract in its place which is the jurisdiction of Civil Courts.
6. The said order is under challenge in this appeal. On a plain reading of the impugned order it is manifest that the High Court while considering the writ petition filed by the owner of the vehicle for quashing of the notice of auction-sale and for other consequential reliefs has passed order drawing up a fresh contract between the parties and has issued certain further directions in the matter; the Corporation has been directed to advance a fresh loan to the writ petitioner to enable him to purchase a new truck; to enter into agreement for realization of the balance loan amount in accordance with law; to write off the remaining amount of Rs 16,500 and to order waiving of the interest till date etc.
The order, to say the least, was beyond the scope of the writ petition which was being considered by the High Court and beyond the jurisdiction of the Court in a contractual matter. No doubt, while exercising its extraordinary jurisdiction under Article 226 of the Constitution the High Court has wide power to pass appropriate order and issue proper direction as necessary in the facts and circumstances of the case and in the interest of justice. But that is not to say that the High Court can ignore the scope of the writ petition and nature of the dispute and enter the field pertaining to contractual obligations between the parties and issue such directions annulling the existing contract and introducing a fresh contract in its place.
Drafted By Abhijit Mishra