Sk.Abid Hussein 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. Until the arbitration is disposed of, no insistence should be made on the petitioner for the deposit of royalty and GST for the year 2020. The reasoning was that if the petitioner had not earned anything from the plantation in 2019 due to the cyclonic storm, it would be impossible for them to make the required deposit for 2020. The Court acknowledged that the petitioner's purpose would be served if the arbitration concluded within a reasonable time. The operative direction was to stay the demand for royalty and GST for 2020 pending the arbitration outcome. No issue was expressly left undecided.

Facts

The petitioner, who had taken cashew plantation plots on auction for the year 2020, filed a writ petition seeking a direction to the Divisional Manager, Bhubaneswar (Commercial) Division, Odisha Forest Development Corporation, not to realize royalty (lease rent) and GST for these plots. This request was made because the matter of damage to the plantation by the 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 the year 2019, during 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 should be compelled to deposit royalty and GST for the year 2020, given the significant crop loss in 2019 due to cyclonic storm 'FANI' and the ongoing arbitration proceedings concerning damages and refund of prior payments. Petitioner's Arguments: The petitioner argued that the ongoing arbitration, which includes a prayer for refund of royalty and GST paid for 2019 due to crop loss from 'FANI', should be completed promptly. They contended that it would be impossible to deposit royalty and GST for 2020 if no income was generated in 2019. The petitioner sought a direction to stay the realization of these amounts until the arbitration is concluded. 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 submissions made by the petitioner and the inherent equities of the situation.