IN THE HIGH COURT OF BOMBAY AT GOA
WRIT PETITION NO. 2997 OF 2025 (F)
(SUMAN SHYAM & AMIT JAMSHANDEKAR, JJ.
RESERVED ON : 4th FEBRUARY 2026 PRONOUNCED ON : 17th FEBRUARY 2026
Constitution of India – Scope of Article 226 in concluded contracts – It is a settled principle of law that the Writ Court would not exercise jurisdiction under Article 226 of the Constitution of India in respect of disputes arising out of a concluded contract and grant relief which is contrary to the terms of the contract.
Held: In the present case, there is a clause in the contract, referred to above, which permits the recourse to the Respondents. Therefore, the Petitioner cannot seek relief by invoking the jurisdiction of a Writ Court under Article 226 of the Constitution of India. In any case, even on merits, we do not find any violation of the fundamental rights of the Petitioner. It is a contractual matter between the parties and they are bound by the terms and conditions of the contract.
FACTS
The Petitioner is seeking a Writ of Mandamus directing the Respondents to recalculate the outstanding dues in respect of the gold loans availed by the Petitioner by freezing the interest rate as on 8th September 2021 and waiving all panel interest thereafter. The Petitioner is further seeking directions against the Respondents to accept the payment of the gold loan from the Petitioner and forthwith release/return the pledged gold ornaments to the Petitioner.
The Petitioner received a message regarding the default in payment of the loan amount, the Petitioner immediately visited the Respondents and offered to pay the full loan amount so as to redeem the pledged gold ornaments.
However, the Respondents refused to return the gold ornaments solely on the ground that there is a Garnishee Order issued against the Petitioner. The Respondents clarified to the Petitioner that the gold loan accounts will be closed after the payment of the gold loan. However, the pledged ornaments shall not be released because of the loans availed in other branches of the Respondents by Companies where the Petitioner is one of the Directors and/or Guarantor.
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