A Single Judge of the Calcutta High Court in the case of Jyoti Sankar Bera v. The State of West Bengal, [WPA No. 11406 of 2020, decided on March 2, 2021], adjudicated upon the issue whether disputes under lease agreements pertaining to work of public nature, would be amenable to writ jurisdiction under Article 226 of the Constitution of India despite the existence of arbitration clauses in the lease agreements. 

Decision by the Court: 

The Calcutta High Court reiterated that it is a well-settled law that mere presence of an arbitration clause cannot fetter the power of judicial review of High Courts under Article 226 of the Constitution of India. The court opined that actions of the State, unlike private litigants, have to be fair, impartial and in consonance with principles of natural justice and hence, any arbitrary action on the part of the State can be struck down, even in the domain of private contracts.  

Therefore, in the instant case, since the lease agreements fell within the domain of public law, the Calcutta High Court held that the same are amenable to the writ jurisdiction despite the existence of arbitration clauses.   

Please find attached a copy of the judgment.

This update has been contributed by Udit Mendiratta (Partner) and Kunal Dey (Associate).