SRIKARA MAJHI Vs. DIVISIONAL MANAGER

JUDGEMENT

(1.) Both the writ applications relate to the same issue and, accordingly, learned counsel appearing for both parties in both the writapplications were heard and the writ applications are disposed of in this common judgment. The petitioner in W.P.(C) No.22004 of 2011 is the District Manager of Orissa State Civil Supplies Corporation Ltd., and opposite party no.3 therein is the Proprietor of M/s. Maa Rice Mill located in the district of Subarnapur.

(2.) The facts leading to filing of the writ applications are that M/s. Maa Rice Mill was appointed as a custom miller by the Orissa State Civil Supplies Corporation and, accordingly, an agreement was executed between the said M/s. Maa Rice Mill and the Corporation on 3.6.2010 for kharif marketing season 2009-10. Under the agreement, the Rice Mill was to receive paddy stocks procured from the farmers by the Corporation and supply the resultant FAQ standard rice to the Corporation within a stipulated time for distribution to the beneficiaries under the Public Distribution System. The said Rice Mill received 29289 quintals of paddy with due acknowledgement and as per the terms of the agreement, it was to supply 19916.85 quintals of resultant rice to the Corporation. As against the said contract, the Rice Mill had supplied only 15875.33.200 quintals and misappropriated 3748.83.400 quintals of rice. The Corporation therefore issued a demand notice through the Collector, Subarnpur on 17.2.2011 requesting the Mill owner to deposit the cost of balance rice. The owner of the Rice Mill, who is opposite party no.3 in W.P.(C) No.22004 of 2011, having not paid the price of the misappropriated rice, a requisition under Section 4 of the Orissa Public Demand Recovery Act 1962 was filed in the Court of Certificate Officer for realization of a sum of Rs.62,91,444.34 from the said opposite party no.3. Along with the said requisition, property statement of the owner was also furnished for the purpose of attachment and recovery of the dues of the Corporation.

(3.) Opposite party no.3, who is owner of the Rice Mill, had availed financial assistance from opposite party no.1-Bank, namely, United Bank of India by mortgaging the properties, which were sought to be attached under the recovery proceeding initiated under the Orissa Public Demand Recovery Act, 1962. The dues of the Bank having not been paid, the Bank took recourse to the provisions of SARFAESI Act, 2002 and a notice was issued under Section 13(4) of the said Act on 15.7.2011 for sale of the mortgaged properties. When the Corporation came to know about the said notice, intimation was given to the Bank indicating therein that the Corporation was to get an amount of Rs.62,91,444.34 from the said Rice Mill owner. However, intimation was ignored by the Bank.