SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Ori) 528

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Durdyodhan Mallik - Petitioner
Versus
State Of Odisha And Ors. – Respondents
W.P.(C) No.20831 of 2014, W.P.(C) No.20829 of 2014, W.P.(C) No.20830 of 2014
Decided On : 19-09-2024  

Advocates Appeared:
For the Petitioner:Mr. J. Dash, Advocate
For the Respondent: Mr. B. Panigrahi, Addl. Standing Counsel

Certificate proceedings for unpaid bid amounts under OPDR Act require a valid registered lease deed; absence of such documentation renders proceedings invalid.

Headnote:(A) Orissa Public Demands Recovery Act, 1962 - Initiation of certificate proceedings for recovery of unpaid bid amount without a valid lease deed challenged. The petitioners argued that without a registered lease deed, certificate proceedings were improper under the OPDR Act. The court accepted that without valid documentation, recovery as arrears of land revenue was not maintainable. (Paras 2, 36-42)

(B) Transfer of Property Act, 1882 - Section 107 - Registration Act, 1908 - Section 17(1)(d) - A lease for exceeding one year must be registered to be enforceable.

(C) Legal principles require that rights to fish and similar economic benefits qualify as immovable property, necessitating registration under the said acts. (Paras 27-29)

Facts of the case:
Petitioner participated in the 1998-99 public auction for a fishery, deposited partial amounts, but the lease was never formally documented. Subsequent certificate proceedings for dues were contested. (Paras 1-6)

Findings of Court:
The court found certificate proceedings invalid due to lack of proper registration and execution of lease deeds. (Paras 36-42)

Issues: Whether the certificate proceeding for recovery, absent a valid lease deed, is maintainable? (Paras 2, 24)

Ratio Decidendi: The court concluded that without valid lease deeds executed according to the law, the initiation of certificate proceedings was without basis and thus wrongful. (Paras 33-35)

Result: Certificate proceedings quashed; no cost. (Par 43)

Table of Content
1. challenges surrounding lease agreements (Para 1 , 3 , 4 , 5 , 6)
2. arguments regarding lease validity and legal proceedings (Para 2 , 7 , 8 , 9 , 10 , 11 , 16 , 18 , 19)
3. importance of registration for fisheries leases (Para 24 , 25 , 29 , 30 , 31)
4. court's rationale for quashing certificate proceedings (Para 27 , 32 , 36)
5. final observations and directives (Para 41 , 43 , 44)

JUDGMENT :

S.K. MISHRA, J.

1. These Writ Petitions have been preferred challenging the certificate proceedings initiated against the Petitioners for recovery of differential unpaid bid amount of the Fishery Sairat Sources for different years ranging from 1998-99 till 2000-01.

2. The point of law involved in all these Writ Petitions is, whether certificate proceedings initiated against the Petitioners for recovery of the unpaid differential bid amount as an arrear of land revenue under the ORISSA PUBLIC DEMANDS RECOVERY ACT , 1962, shortly, hereinafter “OPDR Act”, in absence of a valid lease deed is maintainable. The point of law, being same in all the three Writ Petitions, on the request of learned Counsel for the Petitioners, have been heard together and are being disposed of vide this common judgment. For the sake of convenience and brevity, the facts dealt in W.P.(C) No.20831 of 2024, (Durdyodhana Mallik Vs. State of Odisha & others) is taken up as lead case.

3. The factual matrix of the case in Durdyodhan Mallik (supra) is that there was a public auction for Rananadi Fishery Sairat under Banki Tahasil in the year 1998-99 vide auction notice dated 27.04.1998. The Petitioner took part in the said public auction and the said fishery was settled in his favour for an amount of Rs.18,125/-. Out of Rs.18,125/-, the Petitioner deposited Rs.4,510/- towards the first installment and Rs.4,400/- towards the second installment.

4. It is further case of the Petitioner that though the auction notice was published on 27.04.1998, the concerned Tahasildar adjourned the auction process from time to time. Ultimately, the fishery sairat was settled in favour of the Petitioner in the month of July, 1998, without proper agreement regarding auction and payment structure.

5. The Petitioner failed to pay the rest amount, as he suffered huge loss in the business due to less rain. The Tahasildar issued notice on 26.11.1998 to the Petitioner to clear the unpaid dues by 30.11.1998 and execute the lease deed on stamp paper, failing which auction will be cancelled and there will be re-auction. Since the Petitioner failed to act in terms of the said communication, he was restrained from fishing from the Sairat. Thereafter the Tahasildar, Banki initiated certificate proceeding against the Petitioner, which was registered as Certificate Case No.100/01-02 and Warrant in Form No.A for attachment of movable property was issued to the Petitioner. In the certificate, issued by the Certificate Officer dated 05.02.2002, an amount of Rs.41,730/- was indicated to be due against the Petitioner, which exceeded more than the principal amount indicated in the demand notice.

6. It is further case of the Petitioner that a right to catch fish is a right to profits and is unquestionably immoveable property, requiring registration for its assignment. But in the instant case, no such agreement was executed with the Petitioner by the Opposite Party No.3 (The Tahasildar, Damapada). However, without considering the case of the Petitioner with proper perspective, the certificate case was initiated against the Petitioner, which is illegal, as because section 2(g) of the OPDR Act defines “Public Demand” means any arrear of money specified in Schedule-I and includes any interest, which may by law be chargeable thereon up to the date, on which a certificate is signed under Chapter-II. Paragraph (iii) of Schedule-I prescribes that for any demand payable to the Collector by a person holding any interest, an agreement has to be executed by the person concerned with the Government. But in the instant

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top