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Patna High Court - Orders

Mahendra Kumar Singh & Anr vs The State Of Bihar & Ors on 23 July, 2014

Author: Mihir Kumar Jha

Bench: Mihir Kumar Jha

                    IN THE HIGH COURT OF JUDICATURE AT PATNA
                             Civil Writ Jurisdiction Case No.12073 of 2013
                 ======================================================
                 1. Mahendra Kumar Singh Son Of Late Bhola Prasad Singh Resident Of
                    Village Bahadur Tola, P.S. - Piro (Hasanbazar), District - Bhojpur
                 2. Upendra Kumar Singh Son Of Late Bhola Prasad Singh Resident Of
                    Village Bahadur Tola, P.S. - Piro (Hasanbazar), District - Bhojpur

                                                                      .... ....   Petitioner/s
                                                  Versus
                 1. The State Of Bihar
                 2. The District Magistrate, Bhojpur At Ara
                 3. The S.D.O. At Piro, District - Bhojpur
                 4. The District Manager, State Food Corporation, Bhojpur At Ara

                                                                 .... .... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s :  Mr. Binod Kumar Sinha, Adv.
                 For the Respondent/s : Mr. M. K. Ambastha, GP-14
                 For the BSFC          : Mr. R.S. Pradhan, Sr. Adv.
                                         Mr. Shailendra Kumar Singh, Adv.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE MIHIR KUMAR JHA
                 ORAL ORDER

4   23-07-2014

Heard learned counsel for the parties.

Learned counsel for the petitioners submits that the certificate proceeding has been initiated against the petitioners even when the respondents have not complied the terms and conditions of the agreement dated 23.1.2013 between the petitioner Mahendra Kumar Singh, proprietor of M/s Hanuman Rice Mill and the Corporation.

Learned counsel for the Corporation on the other hand has pointed out that the said agreement contains a specific clause no.15 as with regard to recovery of the amount of dues of the Corporation by taking recourse to the provision of Bihar Public Patna High Court CWJC No.12073 of 2013 (4) dt.23-07-2014 2 Demand Recovery Act and instituting certificate proceeding. He would, accordingly, submit that when the petitioners have also not given the case number of the certificate case nor has enclosed the notice under Section 7 of the Act, the case in hand is covered by the judgment of this Court dated 22.7.2014 in the case of CWJC No. 7736 of 2014 (M/s Shiv Industries Vs. The State of Bihar & Ors.).

In the considered opinion of this Court, there would be no question of quashing the certificate proceeding specially when the prayer of the petitioners in this writ application is confined to seeking a direction for making arrangement for transportation or lifting of Customized Milled Rice (CMR) from the mill of the petitioner to the FCI in terms of agreement dated 23.1.2013.

As a matter of fact, from the order passed by the Collector of the district, it is absolutely clear that the demand notice was issued against the petitioner for a sum of Rs. 1,99,00,973.32 paise and when the same was not deposited by the petitioner, the certificate case was lodged against the petitioner.

As indicated above, in the agreement executed by the petitioner no.1 to the Corporation, there is a specific clause for recovery of the dues amount of the Corporation by way of taking recourse to certificate proceeding under the Act and, therefore, if Patna High Court CWJC No.12073 of 2013 (4) dt.23-07-2014 3 any certificate proceeding has been lodged against the petitioners, that cannot be said to be bad. This aspect of the matter has been discussed at length in the judgment dated 22.7.2014 in CWJC No. 7736 of 2014 (M/s Shiv Industries Vs. The State of Bihar & Ors.). This case cannot be, therefore, said to be covered by the judgment dated 22.7.2014 in CWJC No. 13746 of 2013 (Sone Valley Rice Mill Vs. The State of Bihar & Ors.) wherein the certificate case was quashed only on the ground of there being no clause in the agreement for recovery of the dues of the Corporation by way of taking recourse to certificate proceeding.

As with regard to other terms and conditions of the agreement including recovery of amount under demand notice, the issue is again squarely covered by the judgment dated 22.7.2014 in CWJC No. 9133 of 2014 (M/s Shivam Mini Modern Rice Mill Vs. The State of Bihar & Ors.).

That being so, this writ application is disposed of in terms of the ratio of the case of M/s Shiv Industries (supra) and M/s Shivam Mini Modern Rice Mill (supra).

(Mihir Kumar Jha, J) Rishi/-

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