{"id":96437,"date":"2009-11-18T00:00:00","date_gmt":"2009-11-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-advik-laboratories-ltd-vs-state-of-punjab-and-another-on-18-november-2009-2"},"modified":"2017-12-19T14:01:52","modified_gmt":"2017-12-19T08:31:52","slug":"ms-advik-laboratories-ltd-vs-state-of-punjab-and-another-on-18-november-2009-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-advik-laboratories-ltd-vs-state-of-punjab-and-another-on-18-november-2009-2","title":{"rendered":"M\/S Advik Laboratories Ltd vs State Of Punjab And Another on 18 November, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">M\/S Advik Laboratories Ltd vs State Of Punjab And Another on 18 November, 2009<\/div>\n<pre>             IN THE HIGH COURT OF PUNJAB AND HARYANA\n                           AT CHANDIGARH\n\n                    Civil Writ Petition No.5036 of 2009\n                   Date of decision: 18th November, 2009\n\nM\/s Advik Laboratories Ltd.\n                                                                ... Petitioner\n                                     Versus\nState of Punjab and another\n                                                            ... Respondents\n\n\nCORAM:        HON'BLE MR. JUSTICE KANWALJIT SINGH AHLUWALIA\n\nPresent:      Mr. R.K. Chopra, Senior Advocate with\n              Ms. Maninder, Advocate for the petitioner.\n              Mr. Anil Kumar Sharma, Additional Advocate General, Punjab\n              for the respondents.\n              Mr. G.S. Sandhawalia, Advocate for respondent No.2.\n\n\nKANWALJIT SINGH AHLUWALIA, J. (ORAL)\n<\/pre>\n<p>              Present writ petition has been filed seeking quashing of<\/p>\n<p>impugned order (Annexure P-14) dated 19th March, 2009. A perusal of<\/p>\n<p>Annexure P-14 reveals that Punjab Health Systems Corporation had<\/p>\n<p>communicated to the Senior Manager, Indian Overseas Bank that bank<\/p>\n<p>guarantee furnished by the petitioner be revoked.<\/p>\n<p>              To appreciate the controversy, it will be necessary to<\/p>\n<p>recapitulate the facts. Petitioner company manufacture drugs. Punjab<\/p>\n<p>Health Systems Corporation, an instrumentality of the State, floated<\/p>\n<p>tenders. Petitioner applied and was declared as a successful bidder and<\/p>\n<p>was awarded the contract. As per the contract, to secure the interest of the<\/p>\n<p>Corporation, petitioner had submitted bank guarantee. According to<\/p>\n<p>counsel for the respondent Corporation, petitioner failed to perform his part<\/p>\n<p>of the contract, therefore, they had proceeded to encash the bank<\/p>\n<p>guarantee.\n<\/p>\n<p><span class=\"hidden_text\"> Civil Writ Petition No. 5036 of 2009                                        2<\/span><\/p>\n<p>               Mr.R.K. Chopra, assisted by Ms.Maninder, appearing for the<\/p>\n<p>petitioner, controverts this assertion and states that the breach of the<\/p>\n<p>contract has been on the part of the Corporation. Mr. Chopra states that<\/p>\n<p>due to the recession in market and delayed payment on the part of the<\/p>\n<p>respondents, petitioner was not able to adhere to the schedule of supply of<\/p>\n<p>drugs.\n<\/p>\n<p>               Whether the act of the respondent Corporation to encash the<\/p>\n<p>bank guarantee can be made subject matter of the writ jurisdiction or not ?<\/p>\n<p>Who is the defaulter ? Who has made breach of contract ? and as to why<\/p>\n<p>the contract could not be adhered to ?, are all disputed questions of fact,<\/p>\n<p>which cannot be gone into in the writ jurisdiction. In the present case,<\/p>\n<p>performance of the contract is sought by invoking the writ jurisdiction.<\/p>\n<p>               Counsel for the respondents relies upon &#8216;<a href=\"\/doc\/191872\/\">National Highway<\/p>\n<p>Authority of India v. M\/s Ganga Enterprises&#8217;<\/a> 2003 (7) SCC 410. Para 7<\/p>\n<p>of the judgment read as under:\n<\/p>\n<blockquote><p>               &#8220;7.    The Respondent then filed a Writ Petition in the<br \/>\n       High Court for refund of the amount. On the pleadings before<br \/>\n       it, the High Court raised two questions viz. (a) whether the<br \/>\n       forfeiture of security deposit is without authority of law and<br \/>\n       without any binding contract between the parties and also<br \/>\n       contrary to Section 5 of the Contract Act and (b) whether the<br \/>\n       writ petition is maintainable in a claim arising out of a breach<br \/>\n       of contract. Question (b) should have been first answered as it<br \/>\n       would go to the root of the matter. The High Court instead<br \/>\n       considered question (a) and then chosen not to answer<br \/>\n       question (b). In our view, the answer to question (b) is clear. It<br \/>\n       is settled law that disputes relating to contracts cannot be<br \/>\n       agitated under Article 226 of the Constitution of India. It has<br \/>\n       been so held in the case of <a href=\"\/doc\/318728\/\">Kerala State Electricity Board v.<br \/>\n       Kurien E.Kalathil<\/a> reported in 2000(4) S.C.T. 242 : (2000) 6<br \/>\n       SCC 293, <a href=\"\/doc\/1156062\/\">State of U.P. v. Bridge &amp; Roof Co. (India) Ltd.<\/a><br \/>\n       reported in (1996) 6 SCC 22 and B.D.A. v. Ajai Pal Singh<br \/>\n       reported in (1989) 2 SCC 116. This is settled law. The<br \/>\n       dispute in this case was regarding the terms of offer. They<br \/>\n<span class=\"hidden_text\"> Civil Writ Petition No. 5036 of 2009                                     3<\/span><\/p>\n<p>       were thus contractual disputes in respect of which a Writ Court<br \/>\n       was not the proper forum. Mr.Dave however relied upon the<br \/>\n       cases of <a href=\"\/doc\/1956761\/\">Verigamto Naveen v. Government of A.P.<\/a><br \/>\n       reported in (2001) 8 SCC 344 and <a href=\"\/doc\/261761\/\">Harminder Singh Arora<br \/>\n       v. Union of India<\/a> reported in (1986) 3 SCC 247. These<br \/>\n       however are cases where the Writ Court was enforcing a<br \/>\n       statutory right or duty. These cases do not lay down that a<br \/>\n       Writ Court can interfere in a matter of contract only. Thus on<br \/>\n       the ground of maintainability the Petition should have been<br \/>\n       dismissed.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>               Therefore, this Court cannot come to the rescue of the<\/p>\n<p>petitioner. Hence, the present writ petition is dismissed. However,<\/p>\n<p>petitioner will be at liberty to take recourse to the alternative remedy<\/p>\n<p>available to him under provisions of law.<\/p><\/blockquote>\n<p>                                       [KANWALJIT SINGH AHLUWALIA]<br \/>\n                                                  JUDGE<br \/>\nNovember 18, 2009<br \/>\nrps\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court M\/S Advik Laboratories Ltd vs State Of Punjab And Another on 18 November, 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.5036 of 2009 Date of decision: 18th November, 2009 M\/s Advik Laboratories Ltd. &#8230; Petitioner Versus State of Punjab and another &#8230; Respondents CORAM: HON&#8217;BLE [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-96437","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Advik Laboratories Ltd vs State Of Punjab And Another on 18 November, 2009 - Free Judgements of Supreme Court &amp; 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