Analysis of High Court of Allahabad in Ipjacket Technology India Pvt. Ltd. vs. Uttar Pradesh Rajkiya Nirman Nigam Ltd.

There is no absolute bar to the maintainability of the writ petition even in contractual matters or where there are disputed questions of fact or even when monetary claim is raised.

The general principles which may be culled out from the aforementioned judgments is that in a case where the contract entered into between the State and the person aggrieved is of a non­statutory character and the relationship is governed purely in terms of a contract between the parties, in such situations the contractual obligations are matters of private law and a writ would not lie to enforce a civil liability arising purely out of a contract. The proper remedy in such cases would be to file a civil   suit   for   claiming   damages, injunctions   or   specific performance or such appropriate reliefs in a civil court. Pure contractual   obligation   in   the   absence   of   any   statutory complexion would not be enforceable through a writ.

The remedy under Article 226 of the Constitution being an extraordinary remedy, it is not intended to be used for the purpose of declaring private rights of the parties. In the case of enforcement   of   contractual   rights   and   liabilities   the   normal remedy of filing a civil suit being available to the aggrieved party,   this   Court   may   not   exercise   its prerogative   writ jurisdiction to enforce such contractual obligations.

Judgement link : http://elegalix.allahabadhighcourt.in/elegalix/WebDownloadJudgmentDocument.do