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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
HARSH BUNGER
Piccadily Sugar And Allied Industries Ltd. – Appellant
Versus
Punjab State Industrial Development Corporation Ltd. – Respondent
JUDGMENT :
Harsh Bunger, J. -
Petitioner (M/s Piccadily Sugar and Allied Industries Ltd.) has filed the instant civil writ petition under Articles 226/227 of Constitution of India, inter alia, seeking a writ in the nature of certiorari for setting aside the order dated 10.02.2023 (Annexure P-21), whereby recovery certificate was issued to recover the alleged dues from the petitioner as arrears of land revenue and all consequential proceedings arising therefrom. A further prayer has been made for quashing the auction notice dated 07.06.2024 (Annexure P-33), issued by the Assistant Collector 2nd Grade, Patran, Patiala.
2. Briefly, Punjab State Federation of Cooperative Sugar Mills Limited (in short 'Sugarfed') received a letter of intent dated 13.03.1991 from Government of India for establishment of a new unit for the manufacturing of white crystal sugar at Patran, District Patiala (Punjab). It appears that a cooperative society, namely, 'The Patran Cooperative Sugar Mills Limited' was formed for setting up the aforesaid project. For the purposes of construction of the cooperative sugar Mill at Patran, land measuring 991 kanals-6 marlas was acquired, vide award dated 06.06.1991, passed
An arbitration agreement exists despite challenges, and an independent arbitrator must be appointed due to conflicts of interest with the originally named arbitrator.
The court established that communications regarding outstanding dues do not equate to recovery orders, especially when a civil suit on the same matter is pending.
Recovery of dues as arrears of land revenue was sustainable under the Punjab Excise Act, 1914, despite the abolition of land revenue.
Recovery proceedings under the Telangana Revenue Recovery Act cannot be initiated without prior determination of the amount due, especially when an arbitration clause exists in the agreement.
Point of law: Absence of an award in terms of the provisions of the Act, the reference as made to the L.A.R.R. Authority as was done by the District Level Negotiations Committee would have no legal e....
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