NOBLE RESOURCES LTD. versus STATE OF ORISSA AND ANR

NOBLE RESOURCES LTD. versus STATE OF ORISSA AND ANR

A writ petition may lie in contractual matters only if State action is arbitrary and violates Article 14; in cases of pure breach of contract and absence of arbitrariness, courts will not exercise writ jurisdiction. Disputed facts and adequacy of damages as remedy also bar writ relief in this context.

Parties
Appellant: Noble Resources Ltd.; Respondent No.1: State of Orissa; Respondent No.2: Orissa Mining Corporation Ltd.
Jurisdiction
India
Judgment Date
13 September 2006
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Outcome
Appeal dismissed
Legal Topics
Maintainability of Writ Petition in Contractual Matters, State as Defined Under Article 12, Judicial Review Scope in Contract Disputes, Equality Clause Under Article 14
Constitutional Law Contract Law Judicial Review Maintainability of Writ Petition in Contractual Matters State as Defined Under Article 12 Judicial Review Scope in Contract Disputes Equality Clause Under Article 14

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Parties

Noble Resources Ltd.

Appellant

State of Orissa

Respondent No.1

Orissa Mining Corporation Ltd.

Respondent No.2

Procedural Posture

Civil Appeal / Supreme Court Appellate Decision

Legal Issues

  1. 1 Whether a writ petition is maintainable in contractual matters against a State or State Corporation
  2. 2 Whether rise in international price is a relevant ground for cancellation of supply contract by a State supplier
  3. 3 Whether breach of contract by the State supplier amounts to violation of Article 14 and is amenable to judicial review

Ratio Decidendi

A writ petition may lie in contractual matters only if State action is arbitrary and violates Article 14; in cases of pure breach of contract and absence of arbitrariness, courts will not exercise writ jurisdiction. Disputed facts and adequacy of damages as remedy also bar writ relief in this context.

Court Disposition

Appeal dismissed

Orders

  • Appellant may pursue other remedies available in law.
  • No order as to costs.