Facts
The Applicant, a healthcare company, entered into a 15-year Lease Agreement on 20.04.2015 with the Respondent (Jeevan Deep Samity) to operate a trauma care hospital in Korba.
Source reference: para. 2, 4During the COVID-19 pandemic in 2020, the Respondent acquired the facility as an isolation center.
Source reference: para. 3, 5Disputes arose regarding the Respondent's failure to pay service costs exceeding ₹21 crores, the alleged illegal premature termination of the lease without the mandatory 180-day notice, and claims for damages.
Source reference: para. 3, 5The Applicant previously filed an arbitration request (ARBR No. 29/2023) for the same dispute, which was dismissed as withdrawn on 20.02.2024, with liberty granted by the High Court to approach the State Arbitration Tribunal.
Source reference: para. 7, 9The Applicant subsequently filed the present application under Section 11(6) of the Arbitration and Conciliation Act, 1996, contending that the State Arbitration Tribunal lacks jurisdiction as the dispute does not constitute a "works contract".
Source reference: para. 1, 9Issues
Whether an applicant, having previously withdrawn a Section 11 application with liberty to approach an alternative forum, can maintain a subsequent application for the same relief before the High Court.
Source reference: para. 9, 11Law Applied
Section 11(6) of the Arbitration and Conciliation Act, 1996, regarding the appointment of arbitrators.
Source reference: para. 1common law doctrine of "approbate and reprobate," which prohibits a party from taking inconsistent legal stands to suit their convenience.
Source reference: para. 10principles of finality of judicial orders and the prevention of the abuse of the process of law.
Source reference: para. 10Reasoning
The Court observed that the Applicant had previously approached the High Court for the exact same dispute in ARBR No. 29/2023 and chose to withdraw that petition with the specific intent to approach the State Arbitration Tribunal.
Source reference: para. 9The Court rejected the Applicant's new contention regarding the Tribunal's lack of jurisdiction, noting that the Applicant was fully aware of the nature of the dispute and the legal landscape at the time of the initial withdrawal.
Source reference: para. 9The Chief Justice reasoned that allowing the Applicant to re-agitate the same issue after a conscious withdrawal would violate the principle that a litigant cannot "approbate and reprobate".
Source reference: para. 10The Court found that entertaining such a petition would undermine the finality of the court's previous order dated 20.02.2024 and would constitute an abuse of the judicial process.
Source reference: para. 10Holding
The High Court answered the issue in the negative, holding that the Applicant was precluded from filing the present application for the same relief after having withdrawn the earlier petition with liberty to seek a different forum.
The application under Section 11(6) was dismissed.
Source reference: para. 11Original Court PDF
Shri Balaji Institute of Medical Science Pvt LtdvsThe Collector and President of Jeevan Deep Samity, Korba
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