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ARBITRATION

1. The question of referring the matter to arbitration does not arise in such cases where criminal complaint has been filed against the petitioner for fraud, cheating, misappropriation and police has after investigation already filed charge-sheet. The financial loss is suffered by the respondent and therefore this amount has been taken away illegally by the petitioner by fraud over and above the amount to which he was entitled.

 C/SCA/21983/2017                                                   JUDGMENT




      6.     Fro      fraud,           cheating,           illegally

taking away money, misappropriation of the money of public exchequer there cannot be arbitration.

7. Further looking to the prayer of the petitioner in this petition in Para-38 it is essentially challenge to the show cause notices dated 12.7.2017 and 24.8.2017 issued by Palitana and Botad Division Offices. Once fraud has been committed, F.I.R. has been filed and police has filed charge-sheet after investigation and this Hon'ble Court has refused to entertain petition for quashing of the said F.I.R. there cannot be arbitration ins such cases.

Chief Engineer has not done anything except following directions of the Corporate Office by appointing two officers to look into the allegations made in the complaint. It is clear stand of the respondent company that Mr. Tannarana has nothing to do against the petitioner. In fact the respondent has stated that the carrier of Mr. Tannarana shows that he has been promoted from the post of Deputy Engineer up to the post of Chief Engineer. The officer Mr. Yadav who had stated that he had found Rs.20,000/- in the drawer of Mr. Tannarana was earlier also charge- sheeted and punished and at present he is under suspension for this very case of fraud and cheating. He is the person who has in connivance with the C/SCA/21983/2017 JUDGMENT contractors committed fraud and cheating with the respondent and therefore he is accused in the criminal complaint and charge-sheet is filed against him and he is placed under suspension by the respondent company.

explanatory. The Committee found that the petitioners in collusion with the officers of the respondent company have committed fraud, cheating and misappropriation with the respondent company.

In light of he above, petition deserves to be dismissed with costs."

6. The Court has heard learned counsels appearing for the parties and perused the pleadings and papers of both the petitions. It is C/SCA/21983/2017 JUDGMENT pertinent to note at this stage that both the petitions contain challenge to the Show Cause Notices dated 12.07.2017 almost identical in both the petitions and an additional Show Cause Notice in Special Civil Application No.21983 of 2017 being Show Cause Notice dated 24.08.2017, calling upon the petitioners as to why the respondent Company should not stop in dealing with the petitioners, blacklist/ ban the petitioners for doing business with the Company. Therefore, the contents of the Show Cause Notices and tenor thereof will assume greater importance, as it is required to be examined in light of the relevant provisions of law as well as scope of challenge to such Show Cause Notices under Article 226 of the Constitution of India.