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Head Note

Constitution of India, 1950  - Article 226 , Article 14

Powers of High Court - Govt. contract - Writ petition against non-placing of purchase order - Absence of finding in regard to arbitrariness, bias or mala fides in decision - Only a mere error in assessment - Direction issued by High Court for reassessment of vendor rating - It was unobjectionable as public law remedy - However, further observation by High Court that respondent could pursue its remedies against appellant for compensation/damages that may be available to it in law - Not justified - Moreso, when it was not based on any prayer.

The Arbitration and Conciliation Act, 1996  - Section 7 , Section 11

Arbitration clause - When can be invoked - General conditions of contract providing for arbitration - Applicable only, in regard to any contract awarded by placing purchase order and not to any dispute in regard to tender or bid or non-placing of purchase order - Dispute as to damages on account of non placing of purchase order - Respondent cannot invoke arbitration clause in regard to that dispute as arbitration agreement was non-existent in absence of purchase order.

Topic(s)-Arbitration clause , Powers of High Court

Important Decision(s)- Any dispute in regard to tender or bid or non-placing of purchase order - Arbitration Act not applicable.