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 further directed that until the disposal of the arbitration proceedings, no insistence should be made on the petitioner for the deposit of royalty and GST for the year 2020. The reasoning was based on the petitioner's submission that significant crop loss occurred in 2019 due to the cyclonic storm 'FANI' and that the arbitration was pending to assess damages and potentially refund payments made for that year. The Court acknowledged that it would be difficult for the petitioner to make payments for 2020 if they had earned nothing in 2019. The ratio decidendi is that interim relief can be granted to a taxpayer facing financial hardship due to unforeseen events, pending resolution of related disputes through arbitration, to ensure the purpose of arbitration is not defeated.

Facts

The petitioner, who obtained cashew plantation plots through auction, filed a writ petition seeking a direction to the Divisional Manager, Bhubaneswar (Commercial) Division Odisha Forest Development Corporation, to refrain from realizing royalty and GST for the year 2020. This request was made because the matter of damage to the plantation by cyclonic storm 'FANI' had been referred to arbitration. The petitioner argued that in the ongoing arbitration, a prayer had been made for the refund of royalty and GST paid for 2019, a year in which approximately 90% of the crop was lost due to the storm. The petitioner contended that if no earnings were made in 2019, it would be impossible to deposit the required royalty and GST for 2020.

Key Issues

1. Whether the petitioner is entitled to a stay on the realization of royalty and GST for the year 2020 pending the completion of arbitration proceedings concerning crop damage due to cyclonic storm 'FANI'. Petitioner's Arguments: - The petitioner argued that if they suffered significant crop loss in 2019 due to the cyclonic storm 'FANI' and had sought a refund of royalty and GST for that year in the arbitration, it would be impossible for them to deposit the royalty and GST for 2020. - The petitioner's purpose would be served if the arbitration proceedings were completed within a reasonable time. Revenue/State's Arguments: - The judgment does not record any specific arguments made by the revenue or state.