Shaikh Sazid @ Sk Sajid vs. Odisha Forest Development Corporation

Held

The Court acknowledged the petitioner's submission regarding the crop loss due to cyclone 'FANI' and the ongoing arbitration proceedings concerning damage assessment and refund of royalty and GST for 2019. The Court found it understandable that the petitioner would face hardship in depositing royalty and GST for 2020 if no earnings were made in 2019. Consequently, the Court directed Opposite Party No. 5 (the arbitrator) to complete the arbitration proceedings by the end of February 2020, after providing an opportunity for hearing to both parties. Until the disposal of the arbitration, the Court ordered that no insistence be made on the petitioner for the deposit of royalty and GST for the year 2020. The Court did not decide on the ultimate liability for royalty and GST for 2020, leaving it contingent on the arbitration outcome.

Facts

The petitioner, who obtained cashew plantation plots through 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 and GST for these plots. The petitioner argued that due to the cyclonic storm 'FANI', approximately 90% of the crop was lost in 2019, and the matter of damage assessment, along with a prayer for refund of royalty and GST paid for 2019, has been referred to arbitration before Opposite Party No. 5. The petitioner contended that it would be impossible to deposit royalty and GST for 2020 if no income was earned in 2019.

Key Issues

1. Whether the petitioner should be compelled to deposit royalty and GST for the year 2020 when a significant crop loss occurred in 2019 due to cyclone 'FANI' and the matter is under arbitration for damage assessment and refund of prior payments. (Mixed question of law and fact, concerning principles of equity and contractual obligations in the face of unforeseen events). Petitioner's Arguments: The petitioner argued that it is not feasible to pay royalty and GST for 2020 given the substantial crop loss in 2019. They relied on the fact that the arbitration proceeding, which includes a prayer for refund of royalty and GST for 2019, is pending. The petitioner sought a direction to stay the realization of these amounts for 2020 until the arbitration is concluded. Revenue/State's Arguments: The judgment does not record any specific arguments made by the revenue or state authorities. It notes the petitioner's submissions and the court's own observations.