Hindustan Lever Limited vs Managing Director, Patna Industrial Area Development Authority and Others

The Letters Patent Appeal has been filed now by Hindustan Lever Limited which had taken over the erstwhile Tata Oil Mills Company Limited, petitioner in original.

The issue raised in the writ petition was an amount of Rs. 1,27,910.83/- (rupees one lac twenty seven thousand nine hundred ten and eighty three only) raised as maintenance charges in favour of Patna Industrial Area Development Authority.

Of any charges that can be raised by the authority it is not in issue that the matter could be resolved under an agreement which provided for arbitration.

On the matter of arbitration it is contended that the Managing Director of the authority rejected the prayer for arbitration. The amount of charges, thus, stood and there was consequential certificate action under the Bihar & Orissa Public Demands Recovery Act, 1914.

The petitioner had two options. If the prayer for arbitration was declined or for that matter the amount stood as it was given and this aggrieved the petitioner, then the petitioner could have approached the Court as provided under the Arbitration Act, 1940, as applicable then, and prayed for the Court to modify the recoverable amount.

Secondly, if the first step was not resorted to and the realisation of the charges became a matter for certificate action even then u/s 9 of the Bihar and Orissa Public Demands Recovery Act, 1914, the petitioner can approach the authority concerned by denying the liability. Latter part is petitioner''s contention.

In the circumstances, the Court can hardly certify that the learned Judge has committed any error in not granting relief on the petition and, in fact, held that these are complicated matters which cannot be resolved in the High Court''s prerogative writ jurisdiction.

Appeal dismissed.