Madhya Pradesh High Court

Writ petition for recovery of dues is not maintainable where disputed questions of fact necessitate arbitration.

M/S B.P.Vishwakarma vs Chairman Cum Managing Director

Madhya Pradesh High CourtJUDGMENT: June 29, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was awarded a contract by Bharat Sanchar Nigam Limited (BSNL) for the "Operation & Comprehensive Maintenance of Electro-Mechanical Service for Usof Sites in Panna SSA"

Source reference: para. 2

The petitioner claimed to have completed the work and submitted bills totaling Rs. 10,46,048.00, supported by completion certificates

Source reference: para. 1-2

Upon non-payment, the petitioner filed a writ petition under Article 226 of the Constitution seeking payment, 18% interest, and compensation

Source reference: para. 1

The respondents filed a return disputing the completion of work, alleging deficiencies, and claiming that the endorsed bills submitted by the petitioner were fabricated

Source reference: para. 3
02

Issues

1. Whether a writ petition under Article 226 is maintainable when there exist disputed questions of fact regarding the execution of a contract and allegations of fabrication of documents

Source reference: paras. 3 & 8

2. Whether the petitioner is required to exhaust the alternative remedy of arbitration as provided in the agreement

Source reference: paras. 3 & 8
03

Law Applied

The court applied the principle of judicial restraint in writ jurisdiction under Article 226 of the Constitution of India, which holds that High Courts should generally not adjudicate upon "disputed questions of fact" arising out of contractual disputes

Source reference: para. 3 & 8

The court further emphasized the doctrine of alternative remedy, specifically the enforcement of an arbitration clause within a commercial contract to resolve factual disagreements

Source reference: para. 8-9
04

Reasoning

The Court examined the "Payment Terms" of the contract, which required a multi-stage certification process involving an S.D.E. In-charge and a subsequent scrutiny by a Divisional Engineer

Source reference: paras. 6-7

The Court found that the petitioner failed to produce documents demonstrating the second stage of certification required by the agreement

Source reference: para. 8

Since the respondents explicitly disputed the execution of work and alleged that the evidence provided by the petitioner was fabricated, the Court determined that these were complex factual disputes

Source reference: paras. 3 & 8

Consequently, the Court reasoned that such matters cannot be adjudicated in summary writ proceedings and must instead be resolved through the mechanism agreed upon by the parties: the arbitration clause

Source reference: para. 8
05

Holding

The Court declined to grant the requested relief and disposed of the writ petition, holding that the matter involved disputed questions of fact unsuitable for writ jurisdiction

The Court reserved liberty for the petitioner to invoke the arbitration clause and directed respondents to deal with any such request for arbitration within 30 days of the request being made

Source reference: para. 9-10
Madhya Pradesh High Court

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M/S B.P.VishwakarmavsChairman Cum Managing Director

Madhya Pradesh High Court · June 29, 2026

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