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2024 Supreme(Ori) 154

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Bijaya Kumar Agarwala – Appellant
Versus
Odisha Civil Supplies Corporation Limited & Other – Respondent
W.P.(C) No.14597 of 2023
Decided On : 28-08-2024

Advocates Appeared:
For the Appellant :Ms. S. Mohapatra, Advocate
For the Respondent:Mr. T.K. Biswal, Addl. Govt. Advocate

The withholding of security deposits and unpaid transportation charges by the corporation was illegitimate due to the lack of forfeiture orders and the termination of the E.C. Case against the contractor.

Headnote:(A) Essential Commodities Act, 1955 - Writ Petition concerning withholding of security deposit and transportation charges due to pendency of E.C Case No.3 of 2013 - No order made by District Manager forfeiting security money - E.C. Case stands terminated by court decision. (Paras 5, 20-26)

(B) Contract Law - Conditions under agreement between contractor and corporation regarding performance and penalties for failure - No proven loss to Corporation, unjustifiable withholding of payments. (Paras 7, 17, 23)

Facts of the case:
The Petitioner, a transport contractor, engaged in handling PDS wheat faced withholding of dues due to an unresolved E.C. Case initiated against him, which was ultimately found unjustified.

Findings of Court:
The Court ruled in favor of the Petitioner for the release of all withheld amounts, noting unlawful delays by the Corporation.

Issues: Whether the Corporation's withholding of security and transportation charges is justified despite the termination of E.C. Case No.3 of 2013? Whether the Petitioner is entitled to the unpaid amounts?

Ratio Decidendi: The Court found no substantiated grounds for retaining the security deposit or the unpaid dues and emphasized that such pending proceedings could no longer justify the Corporation's action.

Result: Writ Petition allowed; Corporation directed to release owed amounts within six weeks.

Table of Content
1. inaction of authorities in releasing funds. (Para 1 , 2 , 4)
2. counterarguments by opposite parties. (Para 3 , 6 , 10)
3. legal obligations and terms of the contract. (Para 11 , 12 , 21)
4. no evidence of loss caused to the corporation. (Para 14 , 17 , 18)
5. termination of the e.c. case and implications. (Para 19 , 20)
6. court's order to release funds. (Para 24 , 25 , 26)

Judgment :

S.K. Mishra, J.

1 .This writ petition has been preferred by the Petitioner assailing the inaction of the Opposite Party No.1 for not releasing the security deposits and transportation charges on the ground of pendency of E.C Case No.3 of 2013 before the Collector, Khordha (Opposite Party No.4).

2. The brief facts, which led to the filing of the case, are that, the Petitioner was engaged as a L-I and L-II Transport Contractor and transported PDS wheat in Begunia and Bolagarh Block under Khordha District in the year 2013. After Petitioner’s repeated representations on different dates i.e. 10.03.2019 and 27.03.2019, the Opposite Party No.3- District Manager, Odisha State Civil Supplies Corporation (OSCSC) issued a letter intimating therein that some required documents to be submitted for release of his pending dues. In response to the same, the Petitioner submitted all the documents. However, as no action was taken by the Opposite Parties, again on 15.10.2020 the Petitioner deposited the bills and all other documents, as sought for by the Authorities. The Opposite Party No.3 requested the Managing Director, OSCSC (Opposite Party No.2) for releasing of pending dues of the Petitioner vide letter dated 07.01.2021, from which the Petitioner came to know about initiation of one case under the Essential Commodities Act, 1955, shortly, ‘the E.C. Act’, as no communication regarding such case has ever been received by the Petitioner from the Office of the Collector, Khordha.

3. Thereafter, the Petitioner approached this court in W.P.(C) No.15847 of 2021 for release of security deposit, which has been withheld by the Opposite Party No.2. Being directed by this Court to dispose of the representation of the Petitioner, the Opposite Party No.2 passed an order on 01.10.2021, which was communicated to the Petitioner vide letter dated 04.10.2021, indicating about the pendency of E.C Case No.03 of 2013. The Petitioner immediately participated in the said proceeding and filed a petition dated 07.10.2021 for disposal of the said case, which is pending since long. Though the hearing was started on 29.10.2021 and concluded on 08.04.2022, but no final order has been passed till date.

4. The Petitioner preferred W.P.(C ) No.4673 of 2023 seeking for direction to take final decision in E.C Case No.03 of 2013. While disposing of the said Writ Petition, the coordinate Bench directed the Opposite Party No.4-Collector, Khordha to dispose of the same within four weeks from the date of production of certified copy of the said order, with an observation, failing which it will be treated that the E.C Case No.03 of 2013 against the Petitioner has been terminated. Despite production of the order before the Opposite party No.4, no final decision has been taken in the matter, even if the hearing was concluded on 30.04.2022 so also written note of submission has been filed. Thus, in view of the order of this Court, the E.C. Case No.03 of 2013 has been terminated against the Petitioner and Opposite Parties are obliged to release the security deposit and all other unpaid transportation charges to the Petitioner.

5. It is also the case of the Petitioner that, one G.R Case No.388 of 2013, arising out of Khordha P.S Case No.94 of 2013, pending in the file of S.D.J.M., Khordha, has also been quashed by this Court vide order dated 09.09.2022 in the case of Prasanta Kumar Beuria Vs. State of Odisha .

6. Opposing to the prayer made in the Writ Petition, two Counter Affidavits have been filed, one by the Opposite Party No.3 i.e. District Manager, OSCSC and the other by the Opposite Party N

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