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When can the High Court allow writs against contractual disputes

A contractual dispute should not be decided by a high court by appointing a commission and going into facts, the Supreme Court stated while setting aside the order of the high court in the judgment, State of Kerala vs M K Jose. In this case, a contract for building a road was not completed on time despite extensions. The contract was terminated and the earnest money was forfeited, leading to the writ petition in the high court. It appointed a commission to go into the disputed facts and allowed the petition of the contractor. The government appealed to the Supreme Court. Allowing the appeal, the Supreme Court observed that "this kind of orders in a contractual matter is ill-conceived. They not only convert the controversy to a disturbing labyrinth, but encourage frivolous litigation." The high court was criticised for allowing a roving enquiry while the contractor was abusing the process of law.

 Article referred:http://www.business-standard.com/article/opinion/higher-price-in-re-auction-not-legal-115082300797_1.html

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