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Supreme Court of India

NOBLE RESOURCES LTD. versus STATE OF ORISSA AND ANR

Decided
13 September 2006
Judges listed
S.B. SINHA (as the open data lists them; this may not name the whole bench)

Citations

Official
[2006] SUPP. 6 S.C.R. 53 · 2006 INSC 607
Also cited as
  • (2006) 10 SCC 236 (48 citing judgments)
  • AIR 2007 SC 119 (9 citing judgments)

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The Court's text

Paragraphs from our copy of the Supreme Court Reports print, with the Court's own paragraph numbers, the printed page and, where printed, the margin letter. The Court did not number this judgment's paragraphs, so they are listed by page. Link to paragraph N with #para-N.

Unnumbered paragraph

S.B. SINHA, J. Leave granted.

p. 57, margin D

Unnumbered paragraph

Whether a writ petition is maintainable in contractual matter is the core question involved in this appeal which arises out of a judgment and order dated 14.09.2004 passed by a Division Bench of the Orissa High Court in Civil Writ Petition No.1463 of 2004 whereby and whereunder the writ petition filed by the Appellant herein was dismissed.

p. 57, margin E

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Admittedly, the parties entered into a contract in terms whereof the Respondent No.2 herein was to supply 1,20,000 MT + I -10% each of Grade A, Grade B and Grade C iron ore fines by September 2003. On or about 28.02.2003, the parties also agreed that the supply of full tender quantity would be made in the sequence of C, B and A Grades iron ore fines at the prices offered by the Appellant. Indisputably, the Appellant disclosed the names of the parties with which it had entered into agreements to supply iron ore fines procured from the said Respondent. There is no dispute that supply of C-Grade iron ore fines had been made by the Respondent No.2. Indisputably, again supply of 64.236 MT of Grade-B iron ore flnes had also been made. It is furthermore not in dispute that the Respondent No.2 offered 25.000 MT of Grade-A iron ore fines to the Appellant herein which accepted.

pp. 57–58, margin F

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It appears that in regard to the supplies made from March, September. 2003 there had been no complaint on the part of the about any breach of contract on the part of the Respondent 05.09.2003, a fax was sent by the Appellant requesting the laycan following terms :

p. 58, margin A

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''After the successful completion of mv Susan S, we forward to receiving the laycan for the next shipment of Grade-B Ore Fines in the month of September.

p. 58, margin B

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We look forward to receiving your confirmation at please, to enable us to nominate a suitable vessel."

p. 58, margin C

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Yet again by a fax dated 09.09.2003, its request was reiterated stating that it had signed the sale contracts with some of its long term was looking forward for completing the balance shipments and honouring commitment to both Respondent No. 2 and its buyers. A request by the Appellant seeking for personal intervention of the matter Chairman and Managing Director of Respondent No.2.

p. 58, margin C

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The Board Sub-Committee On Sales Policy of Respondent No.2, by a resolution dated 22.09.2003 resolved :

p. 58, margin E

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"Out of the total quantity of A, B & C grade Iron Ore C-grade and one B-grade material has been shipped by Resources Ltd , Hong Kong and another B-grade material loaded during the current month. It was informed that there of 60,000 MT A-grade material. I lakh MT B-grade material lakh MT C-grade material at Daitari. After receipt of information L.C. and confirmed by Company Secretary, it was decided MT, A-grade material is to be shipped to Mis Noble resources, Kong even after 30.08.03 and the party should be pursued insist for the balance quantity of A-grade as it is physically available with OMCV and hence cannot. supply the :nd A-grade."

p. 58, margin E

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"Further as NINL has agreed that they will be lifting Fines from October, 03 onwards, the requirement is to be reviewed for the time being export sale of C-grade fines may be Therefore, the tender auction taken by OMC Ltd. should be cancelled invited in .the News Paper and Website of OMC Ltd. for information of all concerned. On the basis of the above decision the tender export sale of I.80,000 MT of C-grade Iron Ore fines was cancelled.''

pp. 58–59, margin G

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The said resolution was evidently taken in view of the increase rates of iron ore fines in the international market, which has gone manifold. Yet again the Board Committee On Sales Policy of the Respondent No.2 decided as follows :

p. 59, margin A

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"(i) The validity of the tender will not be extended beyond 30.09.2003 and therefore no further quantity shall be supplie:I to Mis

p. 59, margin B

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Resources Ltd. (ii) Fresh tender may be invited for B-Grade Iron Ore fines shipment and one shipment of C-Grade. However, while so it must be ensured that the quantity is available for

p. 59, margin C

Unnumbered paragraph

after meeting the requirement ofNINL."

p. 59, margin C

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However, despite a reminder, no action had been taken and meantime another invitation of tender was published. It is not in dispute that the Appellant _also participated in the subsequent tender.

p. 59, margin D

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A writ petition was filed by the Appellant in the Orissa High Court. its first counter affidavit the Respondent No.2, inter alia, stated :

p. 59, margin D

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"That the Board Sub-Committee on Sales Policy held on 8.5.2993 of OMC Ltd., decided to review the export of Iron Ore fines basis of tender finalized in January-February, 2003. Basing above direction the Board of Directors in their 339th meeting 26.08.03 took the foilowing decisions :

p. 59, margin E

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"Regarding export of A-grade Iron ore fines, it was decided examine if there is a penal provision in the agreement/tender non-fulfillment of obligation on the part of OMC Ltd. It also examine whether any legal complicacy arises if the A ore will be kept reserved for NINL. For the C-grade, approved for inviting fresh Tender"

p. 59, margin F

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Accordingly. tender was floated for a quantity of 1.80.000/- +/- I 0% of C'-grn<le Iron Ore fines in all editions of ECONOMIC on 4.9.2003. Th~ 13oard Sub-Committee on sale held on 22.09.2003 observed as ro I lo" s : A (i) ''Out of the total quantity of A B & C grade Iron Ore fines. two C-grade and one B-grade material has been shipped by Mis Noble Resources Ltd., Hong Kong and another B-grade materials is due to be loaded during the current month. It was informed that there is a stock of 60.000 MT A-grade materials, I lakh MT B-grade material and 2.40 lakh MT C-grade material at Daitori. . After receipt of information from L.C. and con finned by Company Secretary. it was decided that 60.000 MT. A-grade material is to be shipped to Mis Noble Resources. Hong Kong even after 30.08.2003 and the party should be perused not to insist for the balance quantity of A-grade as it is physically not available with

pp. 59–60, margin G

Unnumbered paragraph

OMC and hence cannot supply the 2nd shipment of A-grade" (ii) "Further as NINL has agreed that they will be lifting Iron Ore fines from October 03 onwards, the requirement is to be reviewed and for the time being export sale of C-grade fines may be postponed. Therefore, the tender auction taken by OMC Ltd., should be cancelled invited in the News Paper and Website of OMC Ltd. for information of all concerned. On the basis of the above decision the tender for export sale of 1,80,000 MT of Cgrade Iron Ore fines was cancelled.

p. 60

Unnumbered paragraph

11. That this matter was further referred to Board Committee on sales Policy held on 24.10.2003. The Committee decided as follows:

p. 60

Unnumbered paragraph

(i) The validity of the tender will not be extended beyond 30.09.2003 and therefore no further quantity shall be supplied to Mis Noble

p. 60, margin E

Unnumbered paragraph

Resources Ltd.

p. 60, margin E

Unnumbered paragraph

(ii) Fresh tender may be invited for B-grade Iron Ore fines for one shipment and one shipment ofC-grade. However, while doing so it must be ensured that the quantity is available for export after

p. 60, margin E

Unnumbered paragraph

meeting the requirement ofNINL."

p. 60, margin F

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However, somehow a different stand was taken by the Respondent No.2

p. 60, margin F

Unnumbered paragraph

in its additional counter affidavit as it assigned the following reasons for its ability to supply iron ore fines, stating :

p. 60, margin F

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"(A) The primary crusher at Daitari which was an old plant got break down during the contractual period and the spares were not available in India for immediate repair. As a result production of "A" & "B" grade iron ore got affected. (B) The working permission issued by the Government of India, Ministry of Environment and Forest expired on 13.03.2003 the same was issued afresh by Government of India only

pp. 60–61, margin G

Unnumbered paragraph

9.4.2003, during which period there could not be any production. (C) Production of"A" grade Ore was to be made by Selective Mining which could not be possible due to restrictions imposed by

p. 61, margin A

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Director General Mines, Safety, Government of India. (D) Railway Rakes were not available for transportation of Iron Fines from Daitari to Paradip, despite persuasion of OMC the Railway Authorities.

p. 61, margin B

Unnumbered paragraph

Further, during the said contractual period OMC has not sold ore of any grade to any party other than to Mis. Neelachal !spat Nigam Ltd., which is wholly Government owned undertaking which Government ofOrissa and OMC has a long term understanding for supply of iron Ore to sustain the steel plant of NINL."·

p. 61, margin C

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By reason of the impugned judgment, a Division Bench of the Orissa High Court dismissed the writ petition, inter alia, opining that it involved enforcement of a contract qua contract and thus not maintainable.

p. 61, margin D

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Mr. Ashok Desai, the learned Senior Counsel appearing on behalf of Appellant, would submit :

p. 61, margin D

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(i) When a State-owned monopoly acts unfairly and unjustly, the action being violative of the equality clause contained in Article 14 of the Constitution of India; a writ petition would be maintainable;

p. 61, margin E

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(ii) A contract of supply should not be terminated on the premise that the price of the commodity has gone up in the international market which cannot be said to be either reasonable or bona fide;

p. 61, margin F

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(iii) The Respondent No.2 having taken two different stands before the High Court, arbitrariness and unreasonable on its part was self-evident;

p. 61, margin F

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(iv) The High Court committed a manifest error insofar as it failed take into consideration that a monopoly concern should be directed to honour its contractual obligations in view of the decision of this Court in International Ltd. and Anr. v. Export Credit Guarantee Corporation of India Ltd and Ors., [2004] 3 SCC 553;

p. 61, margin G

Unnumbered paragraph

(v) Remedies available in a suit per se cannot be a ground to refuse relief under Article 226 of the Constitution of India.

p. 62, margin A

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Dr. Rajeev Dhawan, the learned Senior Counsel appearing on behalf of the Respondent, on the other hand. would submit that :

p. 62, margin A

Unnumbered paragraph

(i) The Appellant itself having shown its inability to lift iron ore fines in accordance with the schedule and there being no complaint in respect of supplies made from March to September, the writ jurisdiction of the High Court under Article 226 of the Constitution of India could not be invoked;

p. 62, margin B

Unnumbered paragraph

(ii) The writ petition having been filed only having regard to the escalating prices, the High Court rightly refused to exercise its discretionary jurisdiction;

p. 62, margin B

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(iii) The main plea raised by the Appellant being applicability of the doctrine of promissory estoppel which having no application in contractual matters, the writ petition was not maintainable;

p. 62, margin C

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(iv) A writ petition involving disputed questions of fact would not ordinarily lie and in that view of the mater the High Court rightly refused to exercise its extra ordinary jurisdiction;

p. 62, margin D

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(v) When a decision is taken for b_usiness purposes, the courts should not readily infer arbitrariness on the part c,f the State; and

p. 62, margin E

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(vi) In any event, a writ petition for specific performance of contract would not lie when damages can be awarded for breach of contract.

p. 62, margin E

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The Respondent No.2 is a 'State' within the meaning of Article 12 of the Constitution of India. Its conduct in all fields including a contract is expected to be fair and reasonable. It was not supposed to act arbitrarily, capriciously or whimsically.

p. 62, margin E

Unnumbered paragraph

It is trite that if an action on the part of the. State is violative of the equality clause contained in Article 14 of the Constitution of India, a writ, petition would be maintainable even in the contractual field. A distinction indisputably must be made between a matter which is at the threshold of a contract and a breach of contract; whereas in the former the court's scrutiny would be more intrusive, in the latter the court may not ordinarily exercise its discretionary jurisdiction of judicial review, unless it is found to be violative · of Article 14 of the Constitution. While exercising contractual powers also, A the government bodies may be subjected to judicial review in order to prevent arbitrariness or favouritism on its part. Indisputably, inherent limitations exist, but it would not be correct to opine that under no circumstances a writ will

pp. 62–63, margin F

Unnumbered paragraph

lie only because it involves a contractual matter. ...

p. 63

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This dicta of law was laid down by this Court as far back in 1977, B wherein this Court in Radhakrishna Agarwal and Ors. v. State of Bihar and Ors., [1977] 3 SCC 457 accepted the division of types of cases made by the Patna High Court in which breaches of alleged obligation by the State or its agents could be set up. It read as under :

p. 63

Unnumbered paragraph

"(i) Where a petitioner makes a grievance of breach of promise on · the part of the State in cases where on assurance or promise made by the State he ·has acted to his prejudice and predicament, but the agreement is short of a contract within the meaning of Article 299 of the Constitution;

p. 63

Unnumbered paragraph

(ii) Where the contract entered into between the person aggrieved and the State is in exercise of a statutory power under certain Act or Rules framed thereunder and the petitioner alleges a breach on the part of the State; and

p. 63

Unnumbered paragraph

(iii) Where the contract entered into between the State and the E person aggrieved is non-statutory and purely contractual and the rights and liabilities of the parties are governed ~y the terms of the contract, and the petitioner complains about breach of such contract by the State." · It was further observed :

p. 63

Unnumbered paragraph

"In the cases before us, allegations on which a violation of Article 14 could be based are neither properly made nor established. Before any adjudication on the question whether Article 14 of the Constitution could possibly be said to have been· violated, as between persons G governed by siniilar contracts, they must be properly put in issue and established. Even if the appellants could be said to have raised any aspect of Article 14 of the Constitution and this Article could at all be held to operate within the contractual field whenever the· State enters into such contracts, which we gravely doubt, such questions of fact do not appear to have been argued before the High Court. H And, in any event, they are of such a nature that they cannot be satisfactorily decided without a detailed adduction of evidence, which is only possible in ordinary civil suits, to establish that the State, acting in its executive capacity through its officers. has discriminated between parties identically situated. On the allegations and affidavit evidence before us we cannot reach such a conclusion. Moreover, as we have already indicated earlier, the correct view is that it is the contract and not the executive power, regulated by the Constitution. which governs the relations of the parties on facts apparent in the cases before us."

pp. 63–64

Unnumbered paragraph

It may, however, be true that where serious disputed questions of fact are raised requiring appreciation of evidence, and, thus, for determination thereof, examination of witnesses would be necessary; it may not be convenient to decide the dispute in a proceeding under Article 226 of the Constitution of India.

p. 64, margin C

Unnumbered paragraph

On a conspectus of several decisions, a Division Bench of this Court in ABE, International ltd. (supra) opined that such a writ petition would be maintainable even if it involves some disputed questions of fact. It was stated that no de.cision lays down an absolute rule that in all cases involving disputes questions of facts, the party should be relegated to a civil court.

p. 64, margin D

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fo Mahabir Auto Stores & Ors. v. Indian Oil Corporation and Ors., [ 1990] 3 SCC 752, this Court observed :

p. 64, margin E

Unnumbered paragraph

" .. .It appears to us that rule of reason and rule against arbitrariness and discrimination, rules of fair play and natural justice are part of the rule of law applicable in situation or action by State instrumentality in dealing with citizens in a situation like the present one. Even though the rights of the citizens are in the nature of contractual rights, the manner, the method and motive of a decision of entering or not entering into a contract, are subject to judicial review on the touchstone of relevance and reasonableness, fair play. natural justice, equality and non-discrimination in the type of the transactions and nature of the dealing as in the present case."

p. 64, margin E

Unnumbered paragraph

In State of VIiar Pradesh and Ors. v. Vijay Bahadur Singh and Ors., [ 1982] 2 SCC 365, a Division Bench of this Court held that the Government cannot be denied to exercise its discretionary power provided the same is not arbitrary.

p. 64, margin G

Unnumbered paragraph

Interplay between writ jurisdiction and contractual disputes has given A rise to a plethora of decisions by this Court. See for example Mis Dwarkadas Ma1.fatia & Sons v. Board of Trustees of the Port of Bombay, [1989] 3 SCC 293 and Mahabir Allio Stores (supra).

p. 65

Unnumbered paragraph

In Jamshed Hormusji Wadia .v. Board of Trustees, Port of Mumbai and Anr., [2004] 3 sec 214, this Court stated: B

p. 65

Unnumbered paragraph

'The position of law is settled that the State and its authorities including instrumentalities of States have to be just, fair and reasonable in all their activities including those in the field of contracts. Even while playing the role of a landlord or a tenant, the State and its C authorities remain so and cannot be heard or seen causing displeasure or discomfort to Article 14 of the Constitution of India.

p. 65

Unnumbered paragraph

It is common knowledge that several rent control legislations exist spread around the country, the emergence whereof was witnessed by · the post-World War scarcity of accommodation. Often these legislations D exempt from their applicability the properties owned by the Government, semi-government or public bodies, Government-owned corporations, trusts and other instrumentalities of State ..

p. 65

Unnumbered paragraph

Non statutory contracts have, however, been treated differently. [See Bareilly Development Authority and Anr. v. Ajai Pal Singh and Ors., [1989) E 2 sec I I6J.

p. 65

Unnumbered paragraph

A distinction is also made between performance of a statutory duty and/or dealing of a public matter by a State and its commercial activities. [See Indian Oil Corporation Ltd. v. Amritsar Gas Service and Ors., [1991) I SCC 533 and L.l.C. of India v. Escort Ltd, [1986] I sec 264]. F

p. 65

Unnumbered paragraph

In ABL International Ltd (supra), this Court opined that on a given set of facts, if a State acts in an arbitrary manner even in a matter of contract, a writ petition would be maintainable. It was opined :

p. 65

Unnumbered paragraph

"It is clear from the above observations of this Court, once the G State or an instrumentality of the State is a party of the contract, it has an obligation in law to act fairly, justly and reasonably which is the requirement of Article 14 of the Constitution of India. Therefore, if by the impugned repudiation of the claim of the appellants the first respondent as an instrumentality of the State has acted in contravention of the abovesaid requirement of Article 14, then we H have no hesitation in holding that directions to set right the arbitrary

pp. 65–66

Unnumbered paragraph

Contractual matters are. thus, not beyond Its application may, however. be limited.

p. 66, margin A

Unnumbered paragraph

Although terms of the invitation to scrutiny, but the courts can scrutinize the award or its agencies in exercise of their power arbitrariness or favouritism. [See Directorate Educomp Datamatics Ltd. and Ors., [2004] may refuse to exercise its jurisdiction, if interest.

p. 66, margin B

Unnumbered paragraph

Although the scope of judicial review field has been noticed herein before particularly this Court in ABL International ltd. (supra), decided on its own facts. Public interest as of the factors to exercise power of judicial law element is involved, judicial review may and Anr v. V. Sadasivan and Ors., [2005] Ors. v. Jalgaon Municipal Council and Ors., In State of UP and Ar.r. v. Johri Mal,

p. 66, margin C

Unnumbered paragraph

"It is well settled that while exercising the court is more concerned with the merit of the decision itself. In defender of an impugned decision exercise its power when there are when the decision of the Tribunal body or the arbitrator is given finality a given situatio.n or which, by nature maker's opinion on facts is final. But the decision•making process it becomes the facts of a given case as otherwise under the grounds of illegality, irrationality How far the court of judicial review facts depends on the ground of judicial decision is challenged as irrational, to record a finding whether a decisior.

p. 66, margin E

Unnumbered paragraph

first evaluating the facts of the case and coming to a plausible conclusion and then testing the decision of the authority touchstone of the tests laid down by the court with special to a given case. This position is well settled in the Indian administrative law. Therefore, to a limited extent of scrutinising the decision-making process, it is always open to the court to review the evaluation of facts by the decision-maker."

p. 67

Unnumbered paragraph

Another field where judicial review is permissible would be fide or ulterior motives is attributed. In Asia Foundation and Construction Ltd. v. Trafalgar House Construction India Ltd. and Ors., [1997] I this Court held :

p. 67, margin B

Unnumbered paragraph

" ... We are of the considered opinion that it was not permissible limits of interference for a court of law, particularly there has been no allegation of malice or ulterior motive and particularly when the court has nof found any ma/a fides or favouritism grant of contract in favour of the appellant...." It was further held : "Therefore, though the principle of judicial revi~w cannot so far as exercise of contractual powers of government concerned, but it is intended to prevent arbitrariness or favouritism and it is exercised in the larger public interest or if it is brought notice of the court that in the matter of award of a contract been exercised for any collateral purpose. But on examining and circumstances of ihe present case· and on going through records we are of the considered opinion that none of the criteria been satisfied justifying Court's interference in the grant of contract

p. 67, margin C

Unnumbered paragraph

in favour of the appellant...."

p. 67, margin F

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We, however, having regard to ABL International ltd. (supra), accept Dr. Dhawan 's contention that only because there exists a question of fact or an alternative remedy is available, the same by itself be sufficient for the High Court to decline its jurisdiction.

p. 67, margin F

Unnumbered paragraph

The case at hand may be considered having regard to the aforementioned legal princ;ples in mind. The parties indisputably were bound by of the contract.

p. 67, margin G

Unnumbered paragraph

For determining the dispute; conduct of the Appellant was also A Indisputably, the Respondent No.2 in its letter dated 28.02.2003 offered consignment of 25,000 MT of iron ore fines. It did not lift the same on the ground that a small load would be unacceptable. On 13.05.2003, it lifted the quantity of 46,280 MT of iron ore fines. although the said quantity would also be small load. Although the consignment was to be on monthly basis. it had been rescheduled.

pp. 67–68, margin H

Unnumbered paragraph

In the writ petition it was averred : "Referring to the present stock of 25,000 MT of A Grade iron ore referred to in the letter of acceptance of Opposite Party No.2, the

p. 68

Unnumbered paragraph

Petitioner stated it was not viable to ship a parcel of 25,000/- MT of iron ore on its own and that it would need a minimum parcel of 60,000 MT. Given the tight vessel situation on the east coast and especially in the Halia/Pradip area, the Petitioner stated that it would be advisable for both the Opposite Party No.2 and the Petitioner to plan the first ship in early April"

p. 68

Unnumbered paragraph

The monthly schedule of shipment evidently was altered. We have also noticed herein before that there had been no complaint on the part of the Appe!;ant in regard to the supply of iron ore fines till August, 2003, by which time 1,08, 181 MT of iron ore fines was supplied in two installments: In the

p. 68, margin C

Unnumbered paragraph

month of September 60,000 MT ofGrade-8 iron ore and 1,20,000 MT ofGrade- E A iron was to be supplied. According to the Respondent No. 2, however, such quantity was not possible in adherence of the schedule. We have noticed hereinbefore that in its additional affidavit before the High Court, the Respondent No.2 has not assigned any reason which can be said to be

p. 68, margin C

Unnumbered paragraph

contrary to its earlier stand. Some more reasons kave been assigned in regard to its inability to supply iron ore fines. It its Counter Affidavit, the Respondent No.2 stated:

p. 68, margin C

Unnumbered paragraph

"That to sum up as per tender norms of the tender floated during February, 2003, the price and quantity was valid till end of September 2003 as there was constraint in convergence of ore by rake from Daitari to Pradip, the buyer was intimated by OMC Ltd., to conclude the contract on shipment to shipment basis. OMC would have concluded the contract for the entire tender quantity in one lot with Mis Noble Resources Ltd. Hong Kong had there been no constraint for convergence of cargo to Paradipif the balance quantity against the

p. 68, margin F

Unnumbered paragraph

tender norms would have been supplied to the petitioner company at the tendered prices of February, 2003 the Corporation would have incurred huge loss as the price of iron ore in the International Market A has increased manifold."

pp. 68–69, margin F

Unnumbered paragraph

We may herein notice a statement on tenders floated and accepted in respect of the iron ore fines after 30.09.2003, which is as under :

p. 69

Unnumbered paragraph

MT+- MT+- MT+- E MT+- MT+- F

p. 69

Unnumbered paragraph

10~~ MT+- A The Appellant evidently participated in subsequent tenders. It became successful in some of them. It did not raise any protest. It took part in the said process without any demur.

pp. 69–70

Unnumbered paragraph

We have noticed hereinbefore that the price of iron ore fines in the

p. 70

Unnumbered paragraph

international market varied from time to time. After September. 2003, a tender was issued. The. Appellant took part in the said tender. Its tender was accepted in relation to Grade-C iron ore fines. Its offers on 22.06.2004, 22.11.2004 and 24.01.2005 had also been accepted.

p. 70

Unnumbered paragraph

The table quoted hereinbefore also points out that the Appellant had also understood the implication of phenomenal rise in price in the international market.

p. 70, margin B

Unnumbered paragraph

We may at this juncture furthermore notice that the contractual terms came to an end in September, 2003. It participated in the bids of prices much

p. 70, margin C

Unnumbered paragraph

higher than the contractual prices during the period 12.11.2003 and 03.02.2004. D The stand of the Respondents that only having regard to the f1.~t that there had been increase in the prices, the Appellant filed a writ petition only in February, 2004, cannot be said to be wholly misconceived.

p. 70, margin C

Unnumbered paragraph

The submission of Mr. Desai that rise in international price would not

p. 70, margin C

Unnumbered paragraph

by itself be a relevant consideration to rescind the contract may be correct, but then the same was not the sole ground for the Respondent No.2 to refuse to supply iron ore fines to the Appellants.

p. 70, margin C

Unnumbered paragraph

Moreover, certain serious disputed questions of fact have arisen for

p. 70, margin E

Unnumbered paragraph

...... determination. Such disputed questions of facts ordinarily could not have been entertained by the High Court in exercise of its power of judicial review.

p. 70, margin E

Unnumbered paragraph

Ordinarily, a specific performance of contract would not be enforced by issuing a writ of or in the nature of mundamus, particularly when keeping in view the provisions of the Specific Relief Act, 1963 damages may be an

p. 70, margin E

Unnumbered paragraph

adequate remedy for breach of contract. G The questions as to whether OMC had the available stock of iron ore fines or the only ground to refuse supply thereof was the rise in international prices, are matters which could not have been fully and effectively adjudicated in the writ proceedings. It was difficult for the High Court to go into the other

p. 70, margin E

Unnumbered paragraph

questions which have been raised before by the Appellant. namely. the effect of the purported decision of OMC to offer to the Appellant 60.000 MT of' A' Grade iron ore tines .provided the Appellant gave up all other contractual A rights which stating the bad faith on the part of OMC. We may, however, notice that although a decision had allegedly been taken by OMC not to supply iron ore tines prior to the expiry of the contractual period, but the same had not been communicated. Its effect has to be determined keeping in view the fact as to whether the Appellant suffered any loss thereby. The B reasons for non-supply, we may reiterate, may constitute a breach of contract but having regard to the conduct of the parties, it cannot be said that the same was so arbitrary so as to attract the wrath of Article 14 of the Constitution of India. Before us also what has been emphasized is the purported breaches of contract by the Respondent. A contention has .also been raised by Mr. Desai that keeping in view the facts and circumstances of this case, this Court C should mould the relief. We dci nol intend to do so and leave the parties to raise all contentions before an appropriate forum.

pp. 70–71, margin E

Unnumbered paragraph

For the reasons aforementioned, we are of the opinion that although the approach of the High Court was not entirely correct, its ultimate decision to D refuse to exercise its discretionary jurisdiction cannot be faulted with.

p. 71

Unnumbered paragraph

The appeal is, therefore, dismissed. We, however, leave it open to the Appellant to take recourse to the other remedy which is available in law. In the facts and circumstances of the case, there shall be no order as to costs. S.K.S. Appeal dismissed.

p. 71