STATE OF BIHAR vs JAIN PLASTICS & CHEMICALS LTD.

The Supreme Court held that the High Court erred in exercising its jurisdiction under Article 226 of the Constitution for a breach of contract dispute, reiterating that writ jurisdiction is not the appropriate remedy for enforcing contractual obligations. The Court emphasized that when an alternative and efficacious remedy exists, a litigant should pursue that remedy instead of invoking writ jurisdiction. The appeal was allowed, and the High Court's decision to grant relief to the respondent was set aside, reinforcing the principle that contractual disputes should be resolved through competent courts rather than through writ petitions.