Vprpl-Ksipl Bkn Jv vs Union Of India on 14 July, 2026

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    Rajasthan High Court – Jodhpur

    Vprpl-Ksipl Bkn Jv vs Union Of India on 14 July, 2026

    Author: Sameer Jain

    Bench: Sameer Jain

           HIGH COURT OF JUDICATURE FOR RAJASTHAN
                         AT JODHPUR
    
                 S.B. Civil Writ Petition No. 10651/2026
                       CNR: RJHC010479732026
                       URN: CW / 19465U / 2026
    Vprpl-Ksipl Bkn Jv
                                                                        ----Petitioner
                                        Versus
    Union Of India
                                                                      ----Respondent
                                    Connected With
                     S.B. Civil Writ Petition No. 983/2026
                          CNR: RJHC010048482026
                           URN: CW / 1777U / 2026
    Vishnu Prakash R Punglia Ltd.
                                                                        ----Petitioner
                                        Versus
    Union Of India
                                                                      ----Respondent
                 S.B. Civil Writ Petition No. 8878/2026
                       CNR: RJHC010395302026
                       URN: CW / 16319U / 2026
    Vishnu Prakash R Punglia Ltd.
                                                                        ----Petitioner
                                        Versus
    Union Of India
                                                                      ----Respondent
    
    For Petitioner(s)           :     Mr. Samar Bansal, Sr. Advocate
                                      assisted by Mr. Himanshu Choudhary
                                      Mr. Aaditya Soni, Mr. Pradyumn Singh,
                                      Mr. Reddy Amar, Mr.Aditya Choudhary
    For Respondent(s)           :     Mr. Bharat Vyas, ASG
                                      assisted by Ms. Niti Jain Bhandari &
                                      Mr. Vaibhav Bhansali (through VC)
                                      Mr. B.P. Bohra, Sr. CGC with
                                      Ms. Divyanshi Thanvi & Mr. Pramod
                                      Gaur
    
             HON'BLE MR. JUSTICE SAMEER JAIN

    Order
    14/07/2026

    1. In the instant batch of matters, the cases were heard at

    SPONSORED

    length. Learned Senior Counsel Mr. Bansal, appearing for the

    petitioner, addressed the preliminary objections raised by the

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    learned ASG. In the present matter, it is submitted that the

    impugned action is having an effect at Jodhpur, and it

    constitutes a part of the cause of action arising within the

    territorial jurisdiction of this Court at Jodhpur. It is further

    submitted that the bank guarantees, the encashment

    whereof had been stayed by way of interim protection, were

    issued, and are liable to be invoked through the petitioner’s

    bankers situated at Jodhpur. Therefore, the consequences of

    the impugned action would also ensue at Jodhpur, which fact

    is borne out from the record.

    2. Further, it is submitted that as per the settled position of law

    laid down in Kusum Ingots & Alloys Ltd. v. Union of

    India (2004) 6 SCC 254, National Textile Corporation

    Ltd. & Ors. v. M/s Haribox Swalram & Ors. (2004) 9

    SCC 329, and the judgment of the Division Bench of this

    Court in D.B. Special Appeal Writ No. 873/2023,

    territorial jurisdiction is maintainable in similar facts and

    circumstances. Learned counsel has further relied upon

    Clauses 61 and 64 of the General Terms and Conditions of

    the Contract and submitted that the present dispute falls

    within the exceptions to the arbitration clause.

    3. It is also contended that although an alternative remedy

    before the civil court may be available, the settled position of

    law, as laid down in ABL International Ltd. v. Export

    Credit Guarantee Corporation of India Ltd. (2004) 3

    SCC 553 and Harbanslal Sahnia v. Indian Oil

    Corporation Ltd. (2003) 2 SCC 107, is that a writ petition

    under Article 226 of the Constitution of India is maintainable

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    even where disputed questions of fact are involved,

    particularly where the action complained of is arbitrary, mala

    fide, affects public interest, and ex parte decisions have been

    taken without considering the petitioner’s objections and

    representations. Thus, judicial review is permissible in the

    present matter as the impugned action is ex facie arbitrary

    and unsupported by any justifiable reasons.

    4. It is also submitted that, despite the petitioner being a bona

    fide performer, no drawings, requisite approvals, or

    obligations on the part of the respondent-Railways were ever

    furnished. In support of the said contention, reliance is

    placed upon the recent judgment of this Court reported as

    2026 SCC OnLine Raj 3549 : JCL Infra Private Limited

    v. Jaipur Development Authority.

    5. Per contra, the learned ASG, assisted by learned Senior

    Counsel Shri Bharat Vyas and Mr. Joshi, raised preliminary

    objections, qua maintainability of the present petition. It is

    submitted that the existence of a cause of action under

    Article 226 of the Constitution of India, has to be examined

    on a real and substantial basis, and not on the artificial

    creation of a fractional cause of action. According to the

    respondents, the alleged impact of the impugned action

    must be substantial and not merely incidental. It is further

    submitted that in the present matters, the contract was

    executed at Jaipur, the railway doubling project is situated

    within the territorial jurisdiction of the Rajasthan High Court,

    Jaipur Bench, Jaipur, and the registered office of the

    concerned respondent is also situated there. Thus, merely

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    because the petitioner is a corporate entity having an office

    at Jodhpur does not confer territorial jurisdiction upon this

    Court. According to the respondents, the filing of the present

    writ petition before this Bench amounts to forum shopping.

    In support of the said submission, reliance was placed upon

    ONGC v. Utpal Kumar Basu: (1994) 4 SCC 711, State Of

    Rajasthan & Ors vs Swaika Properties & Anr. : (1985)

    3 SCC 217, and Union of India v. Adani Exports Ltd.

    (2002) 1 SCC 567.

    6. It is next submitted that in matters involving disputed

    questions of fact, particularly disputes relating to delay,

    service of notices, and contractual obligations where time is

    of the essence in infrastructure projects, the Court should be

    slow in entertaining a writ petition. Further, reliance is placed

    upon the judgment of this Court passed in D.B. Special

    Appeal Writ, 2025 : M.K. Singh Infrastructure v. Union

    of India & Codel Corporation, West Central Railway.

    7. It is further submitted that the issue as to whether the

    arbitration clause exists or not, and whether the dispute falls

    within the exception clause, stands concluded by the Division

    Bench judgment in D.B. Civil Reference No. 1/2024 :

    Devendra Singh v. Union of India, wherein it has been

    held that once an arbitration clause exists, the question

    whether the dispute falls within the exception clause is itself

    a matter to be decided by the learned Arbitrator. Such an

    issue cannot be adjudicated by the Court at the threshold

    while considering the maintainability of the writ petition.

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    8. In support of the contentions made insofar qua non-

    maintainability of the petitions, reliance is placed upon the

    ratio encapsulated in M/s TPS Marine v. Andaman and

    Nicobar Administration, 2026 LiveLaw (SC) 287, and

    Vasisth Construction v. General Manager, Railway, SLP

    (C) No. 258/2023, in support of the plea of non-

    maintainability. It is lastly submitted that disputed questions

    of fact arise in the present matter; notices were duly served

    in accordance with the contractual clauses; time was the

    essence of the contract; the work was required to be

    completed within a period of 24 months; and only 27% of

    the work had been executed, till now.

    9. Heard.

    10. On account of paucity of time, the hearing could not be

    concluded. With the consent of learned counsel for the

    respective parties, the matters shall continue to be heard, on

    the next date of hearing.

    11. As the matters pertain to infrastructure projects, namely the

    upgradation of Bikaner Railway Station, doubling of the

    railway line, and considering the urgency involved, it is

    directed, with the consent of the parties, that the matters be

    listed for final hearing, in the supplementary cause list

    tomorrow, i.e., 15.07.2026.

    12. Further, as substantial arguments are heard by this Court,

    the instant matters are admitted, and marked as part-

    heard.

    (SAMEER JAIN),J

    1-Arun/- compl.

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