Case Note & Summary
The dispute arose from a special leave petition filed by Falcon Retreat Pvt. Ltd. against the High Court of Bombay at Goa's order dismissing their writ petition. The petitioners sought to restrain EDC Ltd. from selling their hotel property, Falcon Retreat, to L.K. Trust (Respondent No.3) due to alleged defaults in payment. The High Court found that EDC Ltd. had already entered into a concluded contract with Respondent No.3 for the sale of the property for Rs.12.99 crores, which the petitioners contested as being too low. The petitioners argued that they had a better offer from M/s Condor Polymeric, which was not a party to the original proceedings. The Supreme Court, after hearing the parties, upheld the High Court's decision, emphasizing that EDC Ltd. had the discretion to proceed with the sale and that the petitioners had not provided sufficient grounds for intervention. The Court noted that if Respondent No.3 failed to fulfill its payment obligations, EDC Ltd. could consider other offers. Consequently, the special leave petition was dismissed, and the interim order was vacated.
Headnote
A) Constitutional Law - Discretionary Jurisdiction - Scope of Article 136 - Court declined to interfere in the High Court's dismissal of the writ petition as it found no grounds for intervention. The petitioner's defaults in payment and the concluded contract between Respondent No.1 and Respondent No.3 were significant factors. Held that the discretion under Article 136 was not warranted in this case (Paras 1-3).
Issue of Consideration
Whether the High Court erred in dismissing the writ petition seeking to restrain the sale of assets by Respondent No.1 to Respondent No.3.
Final Decision
The Supreme Court dismissed the special leave petition, affirming the High Court's order and vacating the interim order dated March 27, 2006.
Law Points
- Discretionary jurisdiction
- Article 136
- State Financial Corporation Act
- concluded contract
- auction process
- fair action by corporation
