Suresh 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 also 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 almost 90% of the crop was lost in 2019 due to cyclonic storm “FANI”, making it impossible to deposit the royalty and GST for 2020 if no income was earned. The Court acknowledged that the petitioner's purpose would be served if the arbitration concluded within a reasonable time. The ratio decidendi is that in circumstances of significant crop loss due to natural calamities, a High Court, in its writ jurisdiction, can grant interim relief by directing authorities to defer tax and royalty payments pending resolution of related disputes through arbitration, provided the arbitration is expedited.

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. 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 the year 2019, during which approximately 90% of the crop was lost due to the storm. The petitioner contended that if no income was earned 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 direction to the Divisional Manager, Bhubaneswar (Commercial) Division Odisha Forest Development Corporation not to realize royalty and GST for the cashew plantation plots 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 (approximately 90%) in 2019 caused by cyclonic storm “FANI”, they had not earned any income from the plantation. Consequently, it would be impossible for them to deposit the royalty and GST for the year 2020. The petitioner 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. The court's decision appears to be based on the facts presented by the petitioner and general considerations of equity.