Chhattisgarh High Court

Writ Jurisdiction Cannot Be Invoked for Recovery of Contractual Dues Involving Disputed Questions of Fact

OM ENTERPRISES vs UNION OF INDIA

Chhattisgarh High CourtJUDGMENT: May 08, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, a partnership firm, was awarded nine tenders for executing water supply schemes under the "Jal Jeevan Mission" in District Mahasamund

Source reference: para 3

The Petitioner claimed to have completed the work within the stipulated time, receiving completion and testing certificates from competent authorities

Source reference: para 4

The Petitioner alleged that while full payment was released for three tenders, the Respondent authorities withheld approximately Rs. 1.5 Crores across the remaining tenders despite repeated representations

Source reference: para 5-6

The Respondents opposed the petition, contending that the works were undertaken after the expiry of the "100 Days Campaign" timeline, creating fund release issues

Source reference: para 9

They further argued that the dispute involves complex contractual obligations and disputed questions of fact, making it unsuitable for writ jurisdiction

Source reference: para 10
02

Issues

1. Whether a writ petition under Article 226 of the Constitution of India is maintainable for the recovery of money and enforcement of contractual obligations involving disputed questions of fact.

Source reference: para 9, 13

2. Whether the High Court should exercise its extraordinary jurisdiction when an efficacious alternative remedy, such as a civil suit, is available.

Source reference: para 10, 15
03

Law Applied

The Court primarily applied the principle that writ jurisdiction is not intended to supplant ordinary civil remedies for contractual disputes involving complex factual adjudications

Source reference: para 13

It relied on State of Bihar v. Jain Plastics and Chemicals Ltd., which held that breach of contract claims must be investigated in a civil suit

Source reference: para 13

The Court further applied the principles from Joshi Technologies International Inc. v. Union of India, summarizing that money claims arising out of contractual obligations are normally not entertained under Article 226 except in exceptional circumstances

Source reference: para 15

It also cited Union of India v. Puna Hinda and M.P. Power Management Co. Ltd. v. Sky Power Southeast Solar India (P) Ltd., affirming that disputes over whether or how much amount is payable are questions of fact better suited for trial or arbitration

Source reference: para 16, 17
04

Reasoning

The Court observed that the Petitioner’s grievance is essentially a "money claim" for recovery of outstanding dues under a contract

Source reference: para 19

The Court reasoned that resolving these conflicting claims would require a detailed examination of contractual liabilities, availability of funds, and adherence to scheme guidelines

Source reference: para 19

Following the established precedents, the Court found that such "serious factual controversies" necessitate oral and documentary evidence, which cannot be effectively adjudicated in a summary writ proceeding

Source reference: para 15, 18-19

Since the matter falls within the realm of private law without a distinct "public law" character, the Court determined there was no reason to bypass the alternative remedy of a civil suit

Source reference: para 15.8, 19
05

Holding

The Court dismissed the writ petition, holding that the dispute involved complex and disputed questions of fact that could not be entertained under Article 226/227 of the Constitution

The Court answered both issues in the negative, ruling that the petition was not maintainable for the recovery of contractual dues. However, the Court granted liberty to the Petitioner to pursue alternative legal remedies, such as a civil suit, before a competent forum

Source reference: para 11, 21
Chhattisgarh High Court

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OM ENTERPRISESvsUNION OF INDIA

Chhattisgarh High Court · May 08, 2026

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