Padmanav Palatasingh 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 if no earnings were made from the plantation in 2019 due to the cyclonic storm, it would be impossible to make the required deposit for 2020. The Court acknowledged that the petitioner's purpose would be served if the arbitration was concluded within a reasonable time. The operative direction was to stay the demand for royalty and GST for 2020 pending arbitration. No specific issue was left undecided.

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 (lease rent) and GST for the year 2020. This request stemmed from the fact that the matter of damage caused by cyclonic storm 'FANI' to the plantation had been referred to arbitration. The petitioner argued that in the arbitration, along with the assessment of damage, a prayer was 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, depositing royalty and GST for 2020 would be impossible.

Key Issues

1. Whether the petitioner is entitled to a direction to the Divisional Manager, Bhubaneswar (Commercial) Division, Odisha Forest Development Corporation, not to realize royalty (lease rent) and GST for the year 2020, pending the outcome of arbitration proceedings concerning damages from cyclonic storm 'FANI'. Petitioner's Arguments: The petitioner argued that due to the significant crop loss (approximately 90%) in 2019 caused by cyclonic storm 'FANI', it would be impossible to deposit the required royalty and GST for the year 2020. The petitioner sought relief until the arbitration proceedings, which also included a prayer for refund of 2019 payments, were completed. Revenue/State's Arguments: The judgment does not record any specific arguments made by the revenue or state authorities. The court's decision appears to be based on the facts presented by the petitioner and the court's own observations.