Dismissed¶39

Rajesh Jena v. Chhattisgarh State Dairy Co-Operative Federation Ltd.

Chhattisgarh HC15 Jul 2026WPS/9191/2023

Case brief

AI extract

What is this about?

Recovery notice against daily-wage employee of milk federation for distributors' outstanding dues of Rs.10,86,297/-; petitioner had been Manager of Jagdalpur milk plant and gave undertaking dated 07.9.2022 to have dues adjusted; duty to recover dues lay on petitioner; writ petition under Article 226 dismissed. Keywords: recovery from employee; distributor outstanding dues; undertaking; daily wager; security cheque; Chhattisgarh State Dairy Co-Operative Federation; Jagdalpur milk plant; WPS No. 9191 of 2023.

What did the court decide?

As the petitioner was posted as Manager of the milk plant, it was his duty to collect the outstanding amount payable by the distributors to the Milk Federation, and he failed to discharge that duty, causing financial loss to the Federation. ¶35

Rajesh Jena Vs Chhattisgarh State Dairy… — Writ and Judicial Review | Chhattisgarh HC (2026)

CGHC010384272023

2026:CGHC:30204

NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

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WPS No. 9191 of 2023

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Rajesh Jena S/o Benudhar Jena Aged About 40 Years Daily Wages Worker, Posted At- Chhattisgarh State Dairy Co-Operative Federation Ltd., Urla, Post- BMY Charoda, PS- Charoda, District : Durg, Chhattisgarh

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... Petitioner

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versus

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1 - Chhattisgarh State Dairy Co-Operative Federation Ltd. Through - Its Managing Director, Village- Urla, Post- BMY Charoda, PS- Charoda, District : Durg, Chhattisgarh

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2 - Assistant General Manager, Marketing, CG State Dairy Co- Operative Federation Ltd. , Urla Post- BMY Charoda, PS- Charoda,, District : Durg, Chhattisgarh

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3 - Plant In- Charge Milk Plant Jagdalpur, Po Village- Babusemra, District : Bastar(Jagdalpur), Chhattisgarh

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4 - Raja Chakravarti S/o Late Bula Chakravarti, Aged About 37 Years R/o Hospital Road, Murti Line, Maharani Ward, Gujrati Samaj Ke Samne, Jagdalpur, Bastar, Chhattisgarh.

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5 - Chandra Pathak S/o Shri K.P. Pathak, Aged About 46 Years R/o C/o. Raja Chakravarti, Hospital Road, Murti Line, Maharani Ward, Gujrati Samaj Ke Samne, Jagdalpur, Bastar, Chhattisgarh.

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... Respondents

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For Petitioner	:	Mr. Neeraj Choubey, Advocate
For Respondents 1 to 3	:	Mr. Om P Sahu, Advocate
For Respondents 4 & 5	:	Mr. Imran Ahmed Khan, Advocate Mr. Ishan Verma, Advocate

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(Hon’ble Shri Justice Naresh Kumar Chandravanshi) Order on Board

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16.07.2026

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Digitally signed by BINI BINI PRADEEP PRADEEP Date: 2026.07.17 10:53:34 +0530

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1. Heard.

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2. The petitioner has preferred this petition under Article 226 of the Constitution of India, seeking following relief(s):-

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10.1 That, this Hon'ble Court may kindly be pleased to issue writ(s) /order(s)/ direction(s) against and quash, setaside the impugned recovery order/letter No. 2320 / छगदुमसं�घ/प्रशा�संन / 2023, उरला�, Dated 06/09/203 (AnnexureP/1) issued by the respondent No.1 by declaring the acts of the respondents are bad in the eyes of law.

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10.2 The Hon'ble High Court may kindly be please issuing the suitable direction to the respondent state to take action against the person those are harass the daily wages worker without any justification. And also awarded the cost of litigation arise due to illegality committed by the respondents.

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10.3 The Hon'ble court may be pleased to issue writ/writs / order / orders /direction/ directions/ relief/relief's, which this Hon'ble Court may think fit and proper in the facts and circumstances of the case.

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3. Brief facts of the case are that the petitioner was posted as daily wager employee with respondent Milk Federation in the year 2007. At the relevant time, he was posted at Jagdalpur Milk plant. During his posting at Jagdalpur, he performed his duty under the supervision of higher authority. Respondents 4 & 5 were distributors of the diary products of the Jagdalpur plant pursuant to the agreement executed between them and respondent No.1. When the petitioner was posted at Jagdalpur, he was also entrusted with the responsibility of Manager of the milk plant for collecting outstanding dues from the distributors and the petitioner performed his duty accordingly. Due to Covid-19 pandemic, some distributors were unable to clear the outstanding dues at particular time, however, they executed affidavit in favour

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of the Federation as security and also furnished security cheque in the name of the Federation. Subsequently, the petitioner was transferred vide order dated 11.11.2021 (Annexure-P/5) from Jagdalpur milk plant to Bilaspur milk plant. However, the petitioner requested the incharge of the milk plant for taking necessary steps for recovery of the outstanding amount from the distributors, but no action has been taken by respondent No.3. After the transfer of the petitioner, notice dated 06.9.2023 (Annexure-P./1) was issued to him directing him to deposit a sum of Rs.10,86,297/- against the milk products supplied to respondents 4 & 5. Out of the said amount, Rs.6,01,643/- was recoverable from respondent No. 4 and Rs.4,84,654/- from respondent No. 5. Against the impunged notice (Annexure-P/1), the petitioner has preferred instant petition.

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4. Learned counsel for the petitioner submits that the petitioner is only a daily wager employee and respondents 4 & 5 had deposited security cheque in favour of the Federation. However, instead of initiating recovery proceedings against respondents 4 & 5, notice (Annexure-P/1) has been issued to the petitioner, whereas respondents 4 & 5 are still working as distributors of the milk plant Jagdalpur. Hence, it is prayed that impugned notice (Annexure-P/1) may be quashed. On a query made by the Court, learned counsel for the petitioner submits that the petitioner is still working as Daily wage employee and is presently posted at Federation Headquarter Durg.

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5. Respondents 1 to 3, who are the main contesting party, have filed their reply. Learned counsel appearing for respondents 1 to 3, while referring to its reply submits that the petitioner was performing the duty of Manager of the milk plant Jagdalpur. During his tenure on aforesaid post, distributorship was given to respondents 4 & 5. It is further submitted that the petitioner supplied

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milk and milk products worth Rs.6,01,643/- to respondent No.4/Raja Chakraworthy and Rs.4,84,654/- to respondent No.5 M/s. Chandra Pathak. The aforesaid amount i.e. total Rs.10,86,297/- remained outstanding against respondents 4 & 5, despite that, the petitioner neither recovered the amount nor initiated any steps for its recovery. He further submits that the petitioner himself had given undertaking on 07.9.2022 (page 18 of the reply), wherein he stated that he is ready to have the outstanding amount adjusted at the time of his posting at Jagdalpur plant. Despite the aforesaid undertaking given by the petitioner, he neither deposited any amount nor ensured its adjustment. Hence, it is submitted that the petitioner is liable for the outstanding dues attributable to his tenure and, therefore, the writ petition deserves to be dismissed.

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6. Heard learned counsel for the parties, and perused the material available on record.

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7. Perusal of the facts of the case and contention made by learned counsel for the parties, it is evident that all the three parties, i.e. the petitioner, the Milk Federation/milk plant Jagdalpur and respondents 4 & 5, who are said to be the distributors of the milk plant Jagdalpur, are still working in the Milk Federation. However, the entity that has suffered financial loss is the Milk Federation.

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8. The petitioner himself has admitted that at the relevant time, he was posted as Manager of the milk plant, therefore, it was his duty to collect the outstanding amount payable by the distributors to the Milk Federation. However, it appears that the petitioner failed to discharge his duty, which caused financial loss to the Federation.

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9. Furthermore, the petitioner himself has given undertaking dated 07.9.2022 in favour of Chhattisgarh Milk Federation agreeing to the

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adjustment of the amount outstanding in respect of the period of his duty/liability at Milk plant Jagdalpur. In view of the said undertaking, the petitioner is either liable to deposit the outstanding amount to the respondents/Milk Federation or to insist respondents 4 & 5 to deposit said outstanding amount owed by them. In the facts and circumstances of the case, the petitioner cannot escape from his liability.

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10. In view fo the above, I do not find any merit in the instant petition and the same is accordingly dismissed.

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11. Pending interlocutory application(s), if any, stands disposed of.

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Sd/-

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(Naresh Kumar Chandravanshi) Judge

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Bini

Rajesh Jena v. Chhattisgarh State Dairy Co-Operative Federation Ltd.

Case brief

What is this about?

What did the court decide?

Rajesh Jena v. Chhattisgarh State Dairy Co-Operative Federation Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

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