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1978 Supreme(Pat) 62

PATNA HIGH COURT
Hari Lal Agrawal and M.P.Singh JJ.
Murari Singh And Another
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 1993 of 1975 ; 1995 of 1975 ;
Decided On : FEBRUARY 22, 1978

Headnote:Bihar & Orissa Public Demand Recovery Act, Section 7-Copies of certificate not served-Notices served-Assumed knowledge of the certificate-No valid compliance of provisions-Orders quashed. (Para 5)

       Arbitration Act, Sec. 34 - Arbitration agreement in the settlement document-None of the parties taking any steps for enforcing the arbitration agreement-Existence of arbitration agreement of no avail. (Para 5)

       

Judgment

1. Both these writ applications have been heard together and are being disposed of by this judgment which shall govern both of them. They arise out of certificate proceedings, and having travelled through the Courts of the Revenue authorities right from the certificate officer to the Board of Revenue, have come to this Court in its writ jurisdiction. The facts of the two cases may be separately stated.

C. W. J. C. No. 1993 of 1975.

2. Petitioner Murari Singh had taken lease in the year 1967 from the Forest Department for working and plucking Kendu leaves from Charkapathar Kendu leaves bearing plot No. 172 for three years (20th April 1968 to 30th June 1970). The aforesaid lot was settled for a total sum of Rs. 25,650.00 payable in three instalments of Rs. 8,550.00 annually. The petitioner deposited Rs. 2,130.00 as security deposit and Rs. 8,550.00 as the instalment for the first year, i. e. 1967-68. Thereafter he felt some difficulty in peaceful working of the coupe on account of grant of permits to third persons describing them as raiyats by the Forest Department. He brought the matter to the notice of the officers of the Forest Department by several petitions, but no step was taken to safeguard his interest and ultimately by a letter dated 25-11-1968, he surrendered the coupe indicating his inability to work out the lease for the remaining period and also applied for the refund or the security money. The claim of the petitioner was refuted by the Government and he was informed by a written notice dated 21-1-1969 to deposit the balance of the instalments. The petitioner having failed to abide by the demand, his agreement was determined by the authority concerned in accordance with the terms and conditions of the agreement and the security deposit was forfeited. The lot in question was put to re-auction, but it could fetch a price of Rs. 4,475/- only for the remaining years. After setting off this amount, there was a deficit of Rs. 10,495/-. The petitioner was required to pay the difference of the amount realised on reauction, namely, Rs. 10,495/-, to which the Government was put to loss, and as he failed to make good the loss, the Divisional Forest Officer, Monghyr Division, Monghyr (respondent No. 6) instituted certificate proceeding, bearing Certificate Case No. 9 of 1971-72 against the petitioner for the realisation of the said amount.

C. W. J. C. No. 1995 of 1975

3. Petitioner Naresh Singh had taken settlement of Matis Kendu leaves Lot No. 155 for three years for a total sum of Rs. 30,000.00 payable in three annual instalments of Rs. 10,000/-. He had deposited security deposit of Rs. 2,500/-and the first instalment of Rs. 10,000/-for the first year. He had also taken settlement of three other lots, namely, Gopalpur Lot No. 164 for Rs. 11,925/- at an annual price of Rs. 3,675/- and had deposited the security deposit of Rs. 920.00 and the first instalment of Rs. 3,675/-; Abhaya Nath Lot No. 153 for a total sum of Rs. 15,375/- and had deposited the security of Rs. 1,285/- and the first instalment of Rs. 5,125/- and Barahat Lot No. 154 for a total price of Rs. 18,375/- and had deposited the security deposit of Rs. 1,531/- and the first instalment of Rs. 6,125/-. Necessary agreements were executed for the above settlements. After making deposit of the first instalments in respect of each of the lots, the petitioner defaulted in making deposit of the subsequent instalments and surrendered the respective coupes for the same and similar reason as in top case of petitioner Murari Singh. In this case also, the security deposits were forfeited and the lots in question were re-settled and the difference in the price of the re-settlement and those at which the lots were originally settled with the petitioner was calculated and the petitioner was asked to make good the loss which the Government had suffered. On the failure of the petitioner, respondent No. 6 instituted certificate proceedings, bearing Certificate Case Nos. 2 to










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