Suresh Behera 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 reasoned that if the petitioner suffered substantial losses and had not earned anything from the plantation in the preceding year, it would be impractical to demand immediate deposit of royalty and GST for the current year. Until the arbitration proceedings are concluded, no insistence should be made on the petitioner for the deposit of royalty and GST for the year 2020. This interim relief aims to provide breathing room to the petitioner while the dispute resolution mechanism is in progress. The Court did not expressly leave any issues undecided, focusing on the procedural completion of 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. The petitioner's grievance stemmed from the cyclonic storm "FANI" in 2019, which caused approximately 90% crop loss. The matter of damage assessment had been referred to arbitration before Opposite Party No. 5. The petitioner argued that if no earnings were made in 2019 due to the storm, it would be impossible to deposit royalty and GST for 2020. The arbitration proceeding also included a prayer for the refund of royalty and GST paid for 2019.
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 damage assessment and refund claims for 2019. Petitioner's Arguments: - The petitioner contended that it is not feasible to deposit royalty and GST for 2020 if no income was generated in 2019 due to the "FANI" cyclone. - The petitioner argued that the arbitration proceeding, which includes a prayer for refund of royalty and GST for 2019, should be completed within a reasonable time. Revenue/State's Arguments: - The judgment does not record any specific arguments made by the revenue or state authorities.
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25.11.2019
Heard.
The writ petition has been filed seeking 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 taken by the petitioner on auction for the year 2020, as for fixation of damage of the plantation by the cyclonic storm “FANI”, the matter has been referred to arbitration before Opposite Party No.
Mr. Mohanty, learned counsel for the petitioner submits that in the arbitration along with assessment of damage prayer has been made for refund of the royalty and GST paid for the year 2019, in which year almost 90% of the crop was lost by cyclonic storm “FANI”.
It is an obvious fact that if the petitioner has not earned anything from the plantation in the year 2019, it is not possible to make the deposit as required towards royalty and GST for the year 2020. The purpose of the petitioner shall be served if the arbitration proceeding before Opposite Party No.5 is completed within a reasonable time. W.P.(C) No. 22725 of 2019
Regard being had to all such facts
The judgment continues below.
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