Gangadhar Behera vs. Odisha Forest Development Corporation
Held
The Court disposed of the writ petition by directing Opposite Party No. 5 (the arbitrator) to complete the arbitration proceedings by the end of February 2020. The Court reasoned that until the arbitration is concluded, the petitioner should not be insisted upon to deposit the royalty and GST for the year 2020. This decision was made considering the petitioner's submission regarding the crop loss due to the cyclonic storm and the ongoing arbitration seeking a refund for the year 2019. The principle derived is that financial obligations for a subsequent period can be deferred pending the resolution of disputes concerning prior period losses, especially when such disputes are under arbitration. The Court granted interim relief by staying the demand for royalty and GST for 2020 until the arbitration's disposal.
Facts
The petitioner filed a writ petition seeking a direction to the Divisional Manager, Bhubaneswar (Commercial) Division, Odisha Forest Development Corporation, to refrain from realizing royalty (lease rent) and GST for cashew plantation plots auctioned for the year 2020. The petitioner's claim stems from damages caused by cyclonic storm 'FANI' in 2019, leading to a reference to arbitration. The petitioner argued that since approximately 90% of the crop was lost in 2019 due to the storm, it would be impossible to deposit the required royalty and GST for 2020. The arbitration proceeding, which also sought a refund of royalty and GST paid for 2019, was ongoing.
Key Issues
1. Whether the petitioner should be compelled to deposit royalty and GST for the year 2020 while arbitration proceedings concerning crop damage and potential refunds for the previous year are pending. Petitioner's contention: The petitioner argued that due to the significant crop loss in 2019 caused by cyclonic storm 'FANI', it is not feasible to deposit the royalty and GST for 2020. The petitioner's primary concern is the completion of the ongoing arbitration proceedings, which they believe will address the financial implications of the storm damage and the refund of prior payments. The petitioner's purpose would be served if the arbitration is concluded promptly. Revenue/State's contention: The judgment does not record any specific arguments made by the revenue or state authorities.
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25.11.2019
Heard.
The writ petition has been filed seeking a direction to the Divisional Manager, Bhubaneswar (Commercial) Division Odisha Forest Development Corporation not to realize royalty (lease rent) and GST for cashew plantation plots taken by the petitioner on auction for the year 2020, as for fixation of damage of the plantation by the cyclonic storm “FANI”, the matter has been referred to arbitration before Opposite Party No.
Mr. Mohanty, learned counsel for the petitioner submits that in the arbitration along with assessment of damage prayer has been made for refund of the royalty and GST paid for the year 2019, in which year almost 90% of the crop was lost by cyclonic storm “FANI”.
It is an obvious fact that if the petitioner has not earned anything from the plantation in the year 2019, it is not possible to make the deposit as required towards royalty and GST for the year 2020. The purpose of the petitioner shall be served if the arbitration proceeding before Opposite Party No.5 is completed within a reasonable time. W.P.(C) No. 22721 of 2019
Regard being had to all such facts and
The judgment continues below.
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