Hata Pradhan vs. Odisha Forest Development Corporation

Held

The Court disposed of the writ petition by directing Opposite Party No. 5 to complete the arbitration proceedings by the end of February 2020. This was to be done after providing an opportunity of hearing to both parties. Furthermore, the Court 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 Court acknowledged the petitioner's submission regarding the impossibility of making payments due to crop loss and the pendency of arbitration. The primary relief granted was a stay on the demand for royalty and GST for 2020 until the arbitration concluded, aiming to serve the petitioner's purpose by ensuring a timely resolution of the dispute.

Facts

The petitioner, who obtained cashew plantation plots through auction, filed a writ petition seeking a direction against the Divisional Manager, Bhubaneswar (Commercial) Division, Odisha Forest Development Corporation. The petitioner requested that royalty (lease rent) and GST for the year 2020 should not be realized. This request stemmed from a situation where the matter of damage to the plantation caused by cyclonic storm 'FANI' had been referred to arbitration before Opposite Party No. 5. The petitioner argued that in the arbitration, along with damage assessment, a prayer was made for the refund of royalty and GST paid for 2019, during which year 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 and GST for the year 2020, pending the outcome of arbitration proceedings concerning crop damage due to cyclonic storm 'FANI'. Petitioner's arguments: The petitioner argued that due to the significant crop loss in 2019 from cyclonic storm 'FANI', they were unable to earn any income. Consequently, it would be impossible for them to deposit the required royalty and GST for the year 2020. The petitioner's purpose would be served if the arbitration proceedings, which also included a prayer for refund of 2019 payments, were completed within a reasonable timeframe. Revenue/State's arguments: The judgment does not record any specific arguments made by the revenue or state authorities.