Zonal Manager, Central Bank of India Vs. M/s. Devi Ispat Ltd.
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Head Note
Constitution of India, 1950 - Article 226
Alternate remedy - Arbitration clause in the contract - If there is equally efficacious remedy of arbitration appeal or revision available to the petitioner ordinarily the High Court should not invoke its writ jurisdiction under Article 226 before such remedy is exhausted by the petitioner.
Constitution of India, 1950 - Article 226
Writ jurisdiction - Judicial review in contractual matters - Scope of - Contract with 'State' - There is no absolute bar to exercise of writ jurisdiction - Where the action of a public authority in discharging public functions is shown to be arbitrary and discriminatory, unfair and unreasonable violative of Article 14, the action would be upon to judicial review of High Court under Article 226 of the Constitution - However, the writ Court would not proceed to interpret the disputed terms of the contract itself - Bank arbitrarily with holding the documents of title of its customer dispite no due certificate, directed to release the same.
Constitution of India, 1950 - Article 12
State - Instrumentality of State - Central Bank of India, being a Public Sector Nationalized Bank, discharging public functions, is a 'State' in terms of Article 12 of the Constitution, therefore, amenable to writ jurisdiction under Article 226.
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