Ori HC | “Fraud vitiates every solemn act”: Court deprecates attempt of forum shopping while rejecting petition against termination of contract

Orissa High Court: S.K. Panigrahi, J., while addressing the present petition held that the present case to be a clear case of forum shopping.

Present petition challenges the termination letter by OP 1/ Hindustan Petroleum Corporation Ltd. (HPCL) on ground of violation of natural justice.

Facts of the Case

Petitioner was appointed as Distributor of LPG under Rajiv Gandhi Gramin LPG Vitarak through a Selection Process by way of an open advertisement issued by HPCL.

Core issue surrounding the present dispute is the submission of “Residence Certificate” of the advertised location. Accordingly, he submitted a “Residence Certificate” issued in his favour by the Tahasildar, Dharmasala.  Further it was noted that, Dharmashala Tahasil underwent a bifurcation namely Dharashala Tahasil and Rasulpur Tahasil.

In the meantime, the HPCL authority, during the Field Verification of Credential (FVC), asked the petitioner to submit Residential Certificate issued by the Tahasildar, Rasulpur since the new jurisdictional Tahasil is Rasulpur. Accordingly, the petitioner submitted another “Residence Certificate.”

Finally, he was found suitable for final award of distributorship.

Upon a complaint made by one of the unsuccessful complainants (OP 6), it was discovered that the furnished “Residential Certificate” mentioned him to be the resident of Brahmabarada alleged to be false and incorrect as he is not an ordinary resident of advertised location “Brahmabarada” which is under Rasulpur Block.

Upon perusal of records, petitioner was found to be the resident of village Chandapur and not Brahmabarada

Residential Certificate issued to the petitioner by the Tahasildar, Rasulpur was issued by OP 6 before Sub-Collector, Jaipur, though the Sub-Collector had allowed the appeal and concluded that the petitioner is a resident of “Chandapur” and not ” Brahamabarada”. Further aggrieved by the same, petitioner had approached this Court and the same was dismissed confirming Sub-Collector’s decision.

Petitioner further invoked the provisions of intra-court Appeal, further the Division Bench took the confirmatory view taken by Single Judge.

Thus, the findings of Appellate Authority-cum-Sub-Collector, Jajpur attained finality.

Conclusion

Bench stated that, petitioner secured the distributorship by means of illegal Residential Certificate and thereby he violated the terms of Distributorship Agreement.

There is sufficient convolution in the instant lis making it a clear case of forum shopping at the behest of the petitioner, who, having lost in the earlier round of litigation which attained finality, has sought similar remedy in the instant proceedings.

Court has time and again deprecated the practice of forum shopping by litigants and viewed it as an abuse of law

Court observed that, Selection alleged to have been done through Residence Certificate shrouded with doubts and smacks a fraudulent behavior on the part of the Petitioner. Fraud and justice cannot go together.

It is a settled law that “Fraud” vitiates every solemn act.

Time and again, it has been reiterated by the Apex Court that the contract between private party and the State or instrumentality of State is under the realm of a private law and there is no element of public law, the normal course for the aggrieved party, is to invoke the remedies available under ordinary civil law rather than approaching the High Court

Procedural formalities for the termination of contract need to be performed in fairness and good faith.

In the instant case, the employer has faithfully attempted to observe the principle of natural justice vide its show-cause letter dated 22.11.2017 and dated 11.01.2018; hence the plea of violating the principles of natural justice is ill-founded.

The instant issue has sufficiently occupied the time of this Court and there have been attempts to circumvent the spirit of litigation by using different forums, hence no substantial miscarriage of justice shall be caused if the instant Writ Petition is dismissed.

In view of the above, petition stands dismissed. [Talim Ali v. HPCL,  2020 SCC OnLine Ori 323 , decided on 24-04-2020]

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