Gopal Chandra Swain 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, after affording an opportunity of hearing to both parties. Pending the disposal of the arbitration proceedings, the Court directed that no insistence 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 dues for 2020. The Court acknowledged the petitioner's predicament and aimed to provide interim relief until the arbitration resolved the issue of crop damage and potential refunds. The ratio decidendi is that in cases of significant unforeseen damage leading to complete loss of income, courts may grant interim relief by staying the realization of statutory dues pending resolution of the underlying dispute, provided the dispute resolution mechanism is being actively pursued.

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 not to realize royalty (lease rent) and GST for the year 2020. This request was made because the matter of damage to the plantation caused by 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 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, it would be impossible to deposit the required royalty and GST for 2020.

Key Issues

1. Whether the petitioner is entitled to a direction for the non-realization of royalty and GST for the year 2020 pending the completion 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 caused by cyclonic storm 'FANI', they were unable to earn any income from the plantation. Consequently, it would be financially impossible for them to deposit the royalty and GST for the year 2020. The petitioner sought to link the relief sought to the ongoing arbitration, which also included a prayer for the refund of 2019 payments. The petitioner relied on the principle of equity and the practical impossibility of making payments without income. Revenue/State's arguments: The judgment does not record any specific arguments made by the revenue or the State authorities regarding the realization of royalty and GST. The court's decision appears to be based on the submissions made by the petitioner and the facts presented.