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Hindustan Antibiotics Limited v. Maharashtra Housing And Area Development Authority (MHADA) & Ors.

Civil Appeal · 2018 INSC 934Decided 4 Oct 2018
Civil Appeal No. 10203 of 2018
Justice Abhay Manohar Sapre · Justice S. Abdul Nazeer

Background

Hindustan Antibiotics Limited, a Government of India undertaking manufacturing life-saving drugs, owns large tracts of land at Pimpri, Pune, part of which lies idle. A dispute arose between it and the Maharashtra Housing and Area Development Authority (MHADA) over the disposal of this land. The Bombay High Court dismissed the company's writ petition, holding that such a dispute should be resolved by filing a civil suit, not a writ petition. The company appealed to the Supreme Court.

Decision Breakdown

Noting that both parties were public bodies, the State and its own agencies, the Supreme Court first urged them to settle amicably, citing Order 27 Rule 5 of the Civil Procedure Code, which casts a duty on courts to encourage settlement between government entities. When talks failed, both sides agreed to resolve their dispute through arbitration instead of further litigation. The Court accordingly referred the matter to a sole arbitrator, requesting a former Supreme Court judge, Justice R.V. Raveendran, to arbitrate, and disposed of the appeal on that basis.

Lesson Learnt

Disputes between government bodies or public undertakings are expected to be resolved through negotiation or arbitration rather than prolonged court litigation, and courts actively encourage and facilitate this route under the Civil Procedure Code.

Official source (sci.gov.in)View Judgment (PDF)

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