Shaikh Sazid @ Sk Sajid 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. The Court also ordered 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 almost 90% of the crop was lost in 2019 due to cyclonic storm 'FANI', making it impossible to deposit royalty and GST for 2020 if no earnings were made. 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 until the arbitration's conclusion, with a specific timeline for the arbitration.

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 stemmed from the fact that the matter of damage assessment due to cyclonic storm 'FANI' in 2019 had been referred to arbitration. The petitioner argued that in 2019, approximately 90% of the crop was lost due to the storm, and consequently, they could not have earned anything from the plantation. The petitioner's prayer in the arbitration included a refund of royalty and GST paid for 2019, and they contended that it would be impossible to deposit royalty and GST for 2020 if they had no earnings in 2019. The arbitration proceeding was before Opposite Party No.5.

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 cashew plantation plots for the year 2020, pending the outcome of arbitration proceedings concerning crop damage due to cyclonic storm 'FANI' in 2019. (Question of law and fact, turning on principles of equity and the impact of force majeure events on contractual obligations). Petitioner's arguments: The petitioner argued that due to the significant crop loss (approximately 90%) in 2019 caused by cyclonic storm 'FANI', they were unable to earn any revenue. Therefore, it would be impossible for them to deposit the required royalty and GST for the year 2020. They sought relief until the arbitration proceedings, which also included a prayer for refund of royalty and GST for 2019, were completed. Revenue/State's arguments: The judgment does not record any specific arguments made by the revenue or state authorities.