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1980 Supreme(Pat) 113

PATNA HIGH COURT
B.P.Jha and Chaudhary Sia Saran Sinha JJ.
Budha Singh
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 2566 of 1979 ;
Decided On : MAY 14, 1980

Damages incurred by the Forest Department for the inaction of the petitioner leading to reauction cannot be recovered as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914, as the amount of damages is not specified in the agreement between the parties and the Act does not provide any machinery to ascertain the damages.

Headnote:

PUBLIC DEMANDS RECOVERY ACT - RECOVERY OF DAMAGES - SECTION 73 OF BIHAR PRIVATE FORESTS ACT, 1947 - ITEM NO. 9 OF SCHEDULE 1 OF BIHAR AND ORISSA PUBLIC DEMANDS RECOVERY ACT, 1914 - Damages incurred by the Forest Department for the inaction of the petitioner leading to reauction cannot be recovered as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914, as the amount of damages is not specified in the agreement between the parties and the Act does not provide any machinery to ascertain the damages.

Fact of the Case:

The petitioner, the highest bidder in an auction for the sale of Kendua leaves, failed to deposit the balance amount of the bid and his contract was automatically revoked. The Forest Department assessed the loss incurred and directed the petitioner to pay the loss. The petitioner challenged the recovery of the loss through the process of the Bihar and Orissa Public Demands Recovery Act, 1914.

Finding of the Court:

The court held that the amount of damages could not be recovered as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914, as the amount of damages was not specified in the agreement between the parties and the Act did not provide any machinery to ascertain the damages.

Issues: Whether the amount of damages incurred by the Forest Department for the inaction of the petitioner leading to reauction can be recovered as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914.

Ratio Decidendi: The court held that Item No. 9 of Schedule 1 of the Bihar and Orissa Public Demands Recovery Act, 1914, which allows for the recovery of money payable to a servant of the Government or any local authority, in respect of which the person liable to pay the same has agreed, by a written instrument that it shall be recoverable as a public demand, does not apply in this case because the amount of damages is not specified in the agreement between the parties.

Final Decision: The court allowed the petition and quashed the orders passed by the authorities under the Bihar Public Demands Recovery Act, 1914, directing the petitioner to pay the loss incurred by the Forest Department.

Judgment

1. In an application under Ar. 226 of the Constitution of India the petitioner prays for quashing Annexures 6, 7 and 8. These orders have been passed by various authorities under the provisions of Bihar Public Demands Recovery Act, 1914 .

2. The Forest Department, Deltonganj, published a notice in the Bihar Gazette dated. 7.12.66 for sale of Kendua leaves. The auction was held on 21.12.1966 and the petitioner was the highest bidder. The petitioner agreed to pay Rs. 9,000.00 annually for three years. He also deposited a sum of Rs. 2250.00 as earnest amount on 21.12.66 before the authority concerned. He did not deposit the balance amount of Rs. 6750.00 before the authority concerned. One of the conditions, as mentioned in the advertisement, as contained in Annexure-1, was that if the petitioner did not deposit the aforesaid balance amount in the treasury, then in that case, his contract shall automatically be revoked. In the present case, it is admitted position that the petitioner never deposited the balance of the bid amount in the treasury and, as such, his contract was automatically revoked by the department concerned. There is also a provision in para 5 of Annexure-1 that the loss incurred shall be recoverable from the contractor concerned. It is for this reason, it is stated, that the department assessed the loss, that is, Rs. 5531.00 and directed the petitioner to pay the loss to the Forest Department. The officer of the Forest Department sent a requisition to the Certificate Officer for realising this amount from the petitioner. The point under consideration is : Whether such amount of damages can be realised by the Certificate Officer under the provisions of the Bihar and Orissa Public Demands Recovery Act, 1914 or not? (hereinafter referred to as the Act). According to the provisions of the said Act, any authority can realise the amount through the process of the Act, as mentioned in Sch.1. The heading of Sch.1 of the Said Act is Public Demands. In this Connection, the learned counsel for the State referred to Item No. 9 of Sch.1 of the Act. In other words the argument of the learned counsel for the State is that this money shall come within the purview of Item No. 9 of Sch.1 of the Act. It is relevant to quote Item No. 9 of Sch.1 of the Act.

"9. Any money payable to a servant of the Government or any local authority, in respect of which the person liable to pay the same has agreed, by a written instrument that it shall be recoverable as a public demand."

3. On a perusal of Item No. 9 of Sch.1 of the Act, it is clear that if a party agrees by written instrument to pay a certain amount to the Govt. or to the local authority, then in that case it shall be recoverable as a public demand. On a perusal of Annexure-1, it is clear that the amount of damages is not at all mentioned in annexure-1. In absence of any specified amount, such money cannot be recovered under Item No. 9. The word money mentioned in Item No. 9 means the money specified in the agreement of the parties. In view of the fact that the amount of damages is not mentioned in Annexure-1; as such, amount of damages cannot be recovered by the Forest Department. Neither the agreement nor the Act or the rules made thereunder provides any machinery to ascertain the damages incurred by the Forest Department. Whenever any money is realised as public demand or arrear of revenue or arrear as land revenue, then in all these cases the specified amounts are mentioned by the authorities concerned. If the amount of damage is not mentioned, then it can be ascertained only by the civil court and not by the Forest Department itself.

4. In this connection, a reference has also been made to Sec. 73 of the Bihar Private Forests Act, 1947 which is as follows :

"73. Recovery of money due to Governments. All money payable to the State Government under this Act, or under any rule made under this Act or on account of the price of any forest-produce, may, if not paid when due, b






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