Allowed

Gayatri Devi v. The State Of Bihar and Ors.

Patna HC18 Aug 2017L.P.A/1132/2017

Case brief

AI extract

What is this about?

This Letters Patent Appeal addressed an order certifying a sum as due under the Bihar and Orissa Public Demand Recovery Act. The court noted the High Court below failed to examine if the amount was disputed pending arbitration. Holding this was a fit case for appellate intervention, the certificate was quashed.

What did the court decide?

The order dated 17.03.2016 regarding the certificate case was quashed, and the writ petition was restored to its original file.

Gayatri Devi Vs The State Of Bihar and Ors. — Civil Procedure and Limitation | Patna HC (2017)

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IN THE HIGH COURT OF JUDICATURE AT PATNA

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Letters Patent Appeal No.1132 of 2017

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Arising out of

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Civil Writ Jurisdiction Case No. 8264 of 2016

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===========================================================

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Gayatri Devi, wife of Sri Lal Babu Prasad, proprietor of M/S Hari Om Raw Rice Industries, resident of Chandan Nagara, Gulabbagh, P.S. Sadar, District- Purnea

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.... .... Appellant/s Versus

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The State of Bihar through District Magistrate, District- Suapul

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Bihar State Food and Civil Supplies Corporation Limited, through its M.D., Bihar at Patna

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The District Manager, Bihar State Food and Civil Supplies Corporation Limited, Supaul, District- Supaul

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The A.D.M. cum District Certificate Officer, Supaul, District- Supaul

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.... .... Respondent/s

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===================== Appearance :	======================================
For the Appellant/s	: Mr. Shashi Bhushan Kumar, Advocate
	Mrs. Arti Kumari, Advocate
For the State	: Mr. S. Raza Ahmad, AAG-5
	Mr. Md. Kamil Akhtar, A.C. to AAG-5
For the B.S.F.C. =====================	: Mr. Shailendra Kumar Singh, Advocate ======================================

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CORAM: HONOURABLE THE CHIEF JUSTICE

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and

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HONOURABLE MR. JUSTICE ANIL KUMAR UPADHYAY

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ORAL JUDGMENT

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(Per: HONOURABLE THE CHIEF JUSTICE)

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Date: 18-08-2017

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Delay of 182 days in filing of the appeal is condoned.

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I.A. No. 5923 of 2017 stands allowed and disposed of.

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Patna High Court LPA No.1132 of 2017 dt.18-08-2017

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Seeking exception to an order dated 16.01.2017 passed by the learned Writ Court in C.W.J.C. No. 8264 of 2016, this appeal has been filed under Clause 10 of the Letters Patent.

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A contract was entered into between the appellant and the Bihar State Food and Civil Supplies Corporation and in the execution of the contract in question, certain disputes seem to have occurred which ultimately resulted in proceedings being initiated and it seems that in accordance to the terms and conditions of the agreement arbitration proceedings are pending before the competent authority.

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Be it as it may be, the respondent Bihar State Food and Civil Supplies Corporation in the meanwhile initiated certification proceedings under the Bihar and Orissa Public Demand Recovery Act, 1914 and in Certificate Case No. 65 of 2014-15 by an order passed on 17.03.2016, the certificate case of the respondent Corporation was allowed and challenging the order passed in the certificate case, the writ petition in question was filed.

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The grievance of the appellant in the writ petition challenging the certification proceedings was that the amount in question is disputed. Until and unless the quantification of the amount is not undertaken by resolving the dispute or adjudicating the dispute in accordance to law by an appropriate forum, may be a civil suit or a

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Patna High Court LPA No.1132 of 2017 dt.18-08-2017

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common law remedy available, the certification proceedings was not maintainable and the learned Writ Court in the present case having not adverted to consider this question of law, learned counsel argues that in relegating the appellant to take recourse to the statutory remedy available under the Act was unsustainable. He invites our attention to a judgment of the Patna High Court in the case of Budha Singh Vs. The State of Bihar and Ors.- A.I.R. 1981 Pat 149 to say that until and unless the amount in dispute is not adjudicated, the certification proceedings are not maintainable.

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Even though learned counsel for the respondents refuted the aforesaid contention, we are of the considered view that while relegating the appellant to take recourse to the statutory alternate remedy available, the learned Writ Court has not considered the question as to whether the amount in question is a disputed amount or a non-disputed amount, whether the certification proceedings was maintainable without adjudication of the dispute and whether the Corporation was liable to recover the amount without resorting to any adjudicatory proceedings treating the amount to be an admitted amount beyond the realm of a disputed amount. This aspect of the matter having not been adverted to by the learned Writ Court, it is a fit case where this appeal should be allowed and the writ petition remanded back for reconsideration in accordance with law.

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Patna High Court LPA No.1132 of 2017 dt.18-08-2017

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Accordingly, this Letters Patent Appeal is allowed, order dated 17.03.2016 passed in Certificate Case No. 65 of 2014-15 stands quashed and the writ petition is restored to its original file to be considered by the appropriate Bench in accordance with law.

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Till hearing on the interim prayer by the Writ Court,

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coercive steps shall remain stayed.

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(Rajendra Menon, CJ)

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(Anil Kumar Upadhyay, J)

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P.K.P.

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AFR/NAFR	N.A.F.R.
CAV DATE	N.A.
UploadingDate	19.08.2017
Transmission Date

Gayatri Devi v. The State Of Bihar and Ors.

Case brief

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Gayatri Devi v. The State Of Bihar and Ors.

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