The Hon’ble Supreme Court on March 21, 2022, in the matter of Gujarat Housing Board & Anr. v. Vande Mataram Projects Private Limited while setting aside the High Court’s order and relegating the parties to the remedy under the Arbitration and Conciliation Act, 1996 opined that seeking relief under Article 226 of the Constitution of India in contractual matters, where there is an existing arbitration clause is not an appropriate remedy.

In the impugned order, the High Court had directed Gujarat Housing Board to refund the amount of Rs Rs.1,66,05,000/- and Rs.21,66,470/- which the Board had forfeited while terminating the contract with Vande Mataram Projects Private Limited.

The Apex Court in its order observed:

“We are of the view that the invocation of Article 226 of the Constitution of India for a contractual matter of this nature, where there was an existing arbitration clause was not the appropriate remedy nor could the High Court have examined this and granted the nature of relief which has been done by the impugned order dated 30.09.2021. We are unable to persuade ourselves on the submission of learned counsel for the respondent that the order passed by the High Court was akin to a consent order. It does not say so, we do not find it from the order.”